This paper investigates political uncertainty as a source of regulatory risk. It shows that political parties have … incentives to reduce regulatory risk actively: Mutually beneficial pre-electoral agreements that reduce regulatory risk always … skewed. These results follow from a fluctuation effect of regulatory risk that hurts parties and an output-expansion effect …

generates regulatory risk. I show that this risk has a fluctuation effect that hurts both parties and an outputexpansion effect … that benefits one party. Consequently, at least one party dislikes regulatory risk. Moreover, both political parties gain … from eliminating regulatory risk when political divergence is small or the winning probability of the regulatoryriskaverse …

risk. Politically independent regulatory agencies solve this commitment problem. -- Regulation ; regulatory risk … generates regulatory risk. I show that this risk has a fluctuation effect that hurts both parties and an outputexpansion effect … that benefits one party. Consequently, at least one party dislikes regulatory risk. Moreover, both political parties gain …

are needed to implement pre-electoral agreements. -- regulation ; regulatory risk ; political economy ; electoral …This paper investigates political uncertainty as a source of regulatory risk. It shows that political parties have … incentives to reduce regulatory risk actively: Mutually beneficial pre-electoral agreements that reduce regulatory risk always …

Uncertainty in election outcomes generates politically induced regulatory risk. For monopoly regulation, political … parties\' risk attitudes towards such risk depend on a fluctuation effect that hurts both parties and an output …--expansion effect that benefits at least one party. Irrespective of the parties\' risk attitudes, political parties have incentives to …

The paper investigates political uncertainty as a source of regulatory risk. It shows that political parties have … incentives to reduce regulatory risk actively: Mutually beneficial pre-electoral agreements that reduce regulatory risk always … results follow from a fluctuation effect of regulatory risk that hurts both parties and an output-expansion effect that …

This paper investigates political uncertainty as a source of regulatory risk. It shows that political parties have … incentives to reduce regulatory risk actively: Mutually beneficial pre–electoral agreements that reduce regulatory risk always … skewed. These results follow from a fluctuation effect of regulatory risk that hurts parties and an output–expansion effect …

This note analyses investment and risk-taking in a simple agency model of public regulation/procurement borrowed from … marginally more productive in bad or in good states. Due to the incentive problem investment risk will be avoided even though all … parties are risk-neutral. Apparently, this 'excessive' risk-aversion extends to a large class of agency problems in …