The outreach of macroprudential policies is likely limited in practice by imperfect regulation enforcement, whether due … to shadow banking, regulatory arbitrage, or other regulation circumvention schemes. We study how such concerns affect the …

firms are more likely to anger consumers. Regulation can increase welfare, for example, through fines (even if there are no … changes in prices). We illustrate these gains in a monopoly setting, where regulation affects welfare through 3 channels (i) a …); (ii) regulation calms down existing consumers because a reduction in the profits of an "unkind" firm increases total …

. In a straightforward application of the theory of the second best, I show that incomplete regulation can welfare dominate …For political, jurisdictional and technical reasons, environmental regulation of industrial pollution is often … regulated producers are less polluting than their unregulated ounterparts, emissions under incomplete regulation can exceed the …

This lecture considers the case for consumer financial regulation in an environment where many households lack the …

invest. If the market operates with spot prices, simple regulation can enhance the role of reputation to induce investment …