Paper Assignment

1. Paper Assignment The Massachusetts Ban on Tattoo Parlors

2. Step 1a: Pick a Policy • Does not have to be a US policy; • It can be national, state, or local. • It does not have to be “big,” like Medicare or national defense; • I will illustrate today by discussing the (now repealed) Massachusetts ban on tattoo parlors. • Please choose something not discussed (yet) in lecture.

3. Step 1b: Background • Provide a brief history of the policy (when instituted); • Brief description (exactly what does it do) • If relevant, some measure of how big it is: • Amount of expenditure, or people affected, or number of rules, or whatever, in recent years.

4. Step 1b: Tattoo Parlor Ban • Started in early 1960s in MA; • Repealed in XX; • Made it illegal for anyone other than a licensed physician to provide a tattoo.

5. Step 2: What is the Problem to be Addressed • Explain what problem this policy is meant to address and whether this should be regarded as a problem from standard economics perspectives. • That is, does the policy have a justification in terms of efficiency (fixing a market failure, internalizing an externality, providing a public good) or redistribution (such as alleviating poverty)?

6. Step 2b: Why Ban Tattoo Parlors? • Advocates of the ban argued that parlors transmit blood borne diseases like HIV. • Assuming this is correct, one can then claim the parlors generate an “externality,” since a higher incidence of HIV could put others at risk; • It could also cause a fiscal externality via publicly funded health care.

7. Step 3: Evidence on Whether this Problem is Big or Small • Perhaps provide data on the number of HIV infections attributed to tattoos before the ban • In some cases, however, no such evidence exists. • In this example, the ban occurred before HIV even arrived in US. • Suggests justification against repeal was ex post.

8. Step 4: Will Policy Achieve Stated Goal • Discuss whether the policy is like to accomplish its stated objectives: • For tattoo ban, unlikely; people can get tattoos from neighboring states, or illegal providers. • Discuss evidence: • If ban were still in effect, you could have driven to RI border and seen zillions of parlors. • Or, cite evidence on people in MA w/ tattoos

9. Step 5: Side Effects • What negatives consequences might occur? • Time wasted driving to Rhode Island • Poor quality control in underground market • Corruption • Cite evidence, if possible: • A study showing that HIV cases due to tattoo is higher in states with bans that states without

10. Step 6: Alternative Policies • Are there other policies that might address this problem with fewer side effects or unintended consequences. • Legalize tattoo parlors, but regulate; • For example, must use clean needles • (Aside: libertarians not so persuaded on the regulation, either).

11. Step 7: Assessment • How would an economist would think about balancing the various pros and cons of the policy. • Are there efficiency effects? • Are there distributional effects? • What would you have to believe to be convinced that the policy makes sense?

12. Bottom Line? • Your analysis does not need to produce a bottom line, such as “This policy is bad.” • Rather, it should provide the framework and information that reasonable people should consider in evaluating the policy, along with some guidance about possible ways to weigh the different effects.

13. Evidence • Each paper must cite and reference at least five relevant articles in refereed “economics” journals or working paper series (e.g., those from the National Bureau of Economic Research, available at http://www.nber.org/papers.html). • You may also want to cite and reference other sources, such as policy analyses from government agencies or think tanks, op-eds, and newspaper articles. • Citations to at least five economics research papers are crucial.