Help Fund Two Studies on The Jones Act
Balsa Research is tackling what we believe to be low-hanging fruit in American federal policy: the Jones Act.
Since our previous update, we’ve interviewed countless experts and reviewed the existing literature.
Existing economic analyses were generally decades out of date, limited in scope, or failed to grapple with the broader implications for the US economy as a whole. We lack the right studies to take into the room where it happens, or to demonstrate to stakeholders what they have to gain.
So we put out a call for academic economists who are interested in analyzing the economic impact of the Jones Act. It went better than expected – we ended up with two promising study proposals, when we had only earmarked funding for one.
The proposals take different yet complementary approaches:
A Macro-level Trade Impact Model: This ambitious proposal aims to construct a large-scale detailed gravity model of domestic and international trade flows across the complex network of routes, evaluating the Jones Act's comprehensive impact on US trade patterns. This will create a "gains from trade" view of the Act and its potential repeal. By comparing the current constrained system with a hypothetical unconstrained one within this model, the study will estimate the hidden costs and inefficiencies introduced by the Jones Act.
A Micro-level Agricultural Commodity Analysis: This focused study proposes to examine the impact of the Jones Act on U.S. inter-state agricultural trade, with a particular emphasis on California-produced goods, aiming to pinpoint the exact impact of the Jones Act on their transportation and pricing. Similar to the methodology used in a recent paper on the Jones Act’s impact on US petroleum markets, this granular analysis will provide concrete, quantifiable evidence of the Act's effects. By focusing on a specific sector and nailing down all the concrete details, this research could offer valuable hard data to support broader reform efforts and be extended by further research.
Both of these approaches have the potential to significantly advance our understanding of the Jones Act's economic impact – one at a state level, and one at a national one. By funding both studies, we can create a stronger case for Jones Act reform.
We know that the findings of robust academic studies matter to legislators and key interest groups, Our ultimate goal is to deliver credible studies with legible, practical policy proposals – we’ve structured our call for applications to ensure that the best proposals that we receive will result in papers that can be understood by relevant government offices such as the CBO.
To comfortably fund both studies, we needed to raise an additional $40,000.
Due to how the academic calendar functions, we have a relatively short window – about a month – to secure this funding. Researchers are planning their upcoming academic year, and we need to confirm our support soon to ensure their commitment.
We're under no illusions. The Jones Act has withstood a century of challenges. The odds of a successful repeal are low. However, we believe these studies can meaningfully advance the case and chances for repeal.
If you value evidence-based policy and recognize the potential impact of this research, we urge you to contribute. Your donation, regardless of size, will directly fund rigorous academic work that could reshape American maritime policy, and pilot a strategy that can scale over time.
You can donate here. And if you're as excited about this project as we are, please share this post with others who might be interested in supporting evidence-based policy reform.