allowed to exceed certain amounts. In this paper we analyze what we call the unintended consequences of regulation of bads … where that regulation limits the quantity of bads produced. We consider the simple case in which there is one good and one … regulation of the bad output restricts the production of the intended good output. Our theorem is in the spirit of Shephard …

Last decade's financial crisis sparked a flurry of new banking and finance regulation, highlighted by the Dodd …–Frank Act and changes to housing finance. There is a growing realization among policy experts that that regulation has largely … ranks of unbanked people. President Trump and new Federal Reserve chair Jerome Powell can lead the reform of this regulation …