This paper studies optimal second-best corrective regulation, when some agents/activities cannot be perfectly regulated … apply our results to scenarios with unregulated agents/activities, uniform regulation across agents/activities, and costly … regulation. We illustrate our results in applications to financial regulation with environmental externalities, shadow banking …

This paper studies optimal second-best corrective regulation, when some agents/activities cannot be perfectly regulated … apply our results to scenarios with unregulated agents/activities, uniform regulation across agents/activities, and costly … regulation. We illustrate our results in applications to financial regulation with environmental externalities, shadow banking …

This paper studies optimal second-best corrective regulation, when some agents/activities cannot be perfectly regulated … apply our results to scenarios with unregulated agents/activities, uniform regulation across agents/activities, and costly … regulation. We illustrate our results in applications to financial regulation with environmental externalities, shadow banking …

tension between altruism and "crowding-out" effects (players' efforts are strategic substitutes). We find that more altruistic …

Pigovian regulation provides monetary penalties/rewards to incentivize prosocial behavior, and may thereby trigger … of the same magnitude, we find a negative behavioral effect associated with regulation. Compensating this bias would …

market failure, where even consumers who fully "internalize the externality" overconsume externality-generating goods. At the … same time, socially responsible consumers change the relative effectiveness of taxes, caps, and other policies in lowering … the externality. Second, since consumer beliefs about and preferences over dampening play a crucial role in our framework …

pay attention to both direct and indirect welfare effects. As a concrete proposal a redesign of consumption taxes is …

pay attention to both direct and indirect welfare effects. As a concrete proposal a redesign of consumption taxes is …

pay attention to both direct and indirect welfare effects. As a concrete proposal a redesign of consumption taxes is …