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 …

I characterize the optimal financial regulation policy in an economy where financial intermediaries trade capital … assets on behalf of households, but must retain an equity stake to align incentives. Financial regulation is necessary …

establishes an evolutionary mechanism for adapting regulatory structures to technological and regulation-induced innovation. Using …

as they attempt to reform their frameworks for financial regulation. These economies are striving to balance the quest … objectives can in fact reinforce one another. I also discuss aspects of macroeconomic policies and cross-border regulation that …

public stewardship. Corporate-governance theory suggests that incentive-based deferred compensation could intensify the force …

In the United States today, the system of financial regulation is complex and fragmented. Responsibility to regulate …

This paper sets forth a discussion framework for the information requirements of systemic financial regulation. It …