Over recent years, governments and international organizations have been doing their best to “simplify” business formalities but with little success. They have often been satisfied with reducing the number of procedures and the most notorious costs involved. However, they should have considered all costs – irrespective of their public notoriety – to ensure the reliability and, in general, the value … →
Arruñada, Benito (2011), “Limiting Mortgage Liability Would Be an Error”, La Vanguardia, March 20, Dinero, 13.
There have been plenty of proposals for limiting debtors’ liability in mortgages. Doing so for existing mortgages would be unfair and rash because it would go against the rule of law. But even for future mortgages it would be a costly mistake. In … →
Arruñada, Benito (2011), “Compulsory No-recourse in Mortgage Lending: A Bad Idea,” Expansión, February 23, 46.
In spite of certain court decisions and statements to the contrary, most judges and observers in Spain consider that, in cases of insolvency, mortgage loans should be foreclosed, applying the debtor’s unlimited liability clause that is typical of mortgages in this country. This means … →
Arruñada, Benito (2010), “Let Us Learn from the US Mortgage Chaos” Expansión, October 26.
The mortgage foreclosure crisis in the US offers several lessons for Spain. It warns us of the risk involved if the debtor responds only with the property, and it shows the value of our institutions. First, US mortgages are a primitive form of setting a … →
Arruñada, Benito (2010), “A Country of Unemployment and Self-service,” Cinco Días, April 1, p. 14.
It has always surprised me that in countries richer than Spain, gas stations have staff to fill our tanks, a job that in Spain we have to do for ourselves. Now I know why. It is for the same reason that AENA, the Spanish … →
Arruñada, Benito (2009), “Labour Reform as an Ethical Imperative”, Cinco Días, July 16, p. 15.
Spain has the most restrictive labour law of all developed countries. As a result, it also has the highest unemployment.
The rules that weigh down industrial relations today stem from those laid down formulated under Franco. Why are they still alive 34 years after … →
Over recent years, both governments and international aid organizations have been devoting large amounts of resources to “simplifying” the procedures for setting up and formalizing firms.
My paper “Pitfalls to Avoid when Measuring Institutions: Is Doing Business Damaging Business?” (Jounal of Comparative Economics, 2007, 35, 729-47), analyzes the methodology of the Doing Business indicators in this area and … →
Arruñada, Benito (1998), “Non-Audit Services: Let an Informed Market Decide,” Accountancy, April, 63.
One of the crucial elements in any debate on the regulation of auditors is the effect providing non-audit services has on competition and quality. But regulation should help the market to decide by providing additional information —it should not prevent firms from achieving economies of scope.… →