the United States, is that the heavy regulation of Europe reduces its growth. Using newly assembled data on regulation in … several sectors of many OECD countries, we provide substantial and robust evidence that various measures of regulation in the …

-of-return regulation is generally thought to result in overinvestment, while incentive regulation is believed to entail underinvestment …. Yet, previous empirical work has generally found that the introduction of incentive regulation has not systematically …-of-return regulation because investment decisions (what can be included in the rate base) are usually evaluated in a discretionary manner …