Regulation and the negligence rule are both designed to obtain compliance with desired standards of behavior, but they … differ in a primary respect: compliance with regulation is ordinarily assessed independently of the occurrence of harm … use of the negligence rule is triggered by harm, the rule enjoys an intrinsic enforcement cost advantage over regulation …

examine a variety of extensions of the central theory, concerning accidental harms, costs of imposing fines, errors, general …This article surveys the theory of the public enforcement of law -- the use of public agents (inspectors, tax auditors …, police, prosecutors) to detect and to sanction violators of legal rules. We first present the basic elements of the theory …

Liability and safety regulation are examined as means of controlling risks in a theoretical model of the occurrence of … accidents. According to the model, regulation does not result in appropriate reduction of risk -- due to the regulator's lack of … knowledge about risk -- nor does liability result in that outcome -- because the incentives it creates are diluted by the chance …

Liability in tort and the regulation of safety are considered as means of controlling accident risks using the … instrumentalist, economic method of analysis.Four general determinants of the relative social desirability of liability and regulation … observed to be made between liability and regulation are, when broadly viewed, socially rational: Notably, activities that …

costs, where the future terms of trade are random. Allowing time dependent transportation costs adds a dimension of … in countries characterized by low terms of trade volatility and low financing costs. In these circumstances, imports are … pre-bought, and the spot market for imports is inactive. In countries where the financing costs and the terms of trade …

resulting with unanticipated high costs may induce over-regulation and stagnation, as the parties that would bear the cost of …This paper illustrates the paradox of prudential under-regulation in an economy that adopts financial reform, a reform … probability of the crisis is updated sequentially applying Bayesian inference. Costly regulation can mitigate the probability of …

Regulation consists of rulemaking and enforcement. Economic theory offers two complementary rationales for regulating … and efficiency across society as a whole. Agency-cost theory recognizes that incentive conflicts and coordination problems … arise in multi- party relationships and that regulation introduces opportunities to impose rules that enhance the welfare of …

We quantify firms' compliance costs of regulation from 2002 to 2014 in terms of their labor input expenditure to comply … share of an establishment's wage bill owing to employees engaged in regulatory compliance. Regulatory costs account on … costs …

puzzle in standard economic models. To study this phenomenon, we propose a positive theory of IEAs in which the political … (might not be implemented in full). The theory also provides a new perspective for understanding investments in green …