Economic Regulation and Its Reform: What Have We Learned? (National Bureau of Economic Research Conference Report)

The past thirty years have witnessed a transformation of government economic intervention in broad segments of industry throughout the world. Many industries historically subject to economic price and entry controls have been largely deregulated, including natural gas, trucking, airlines, and commercial banking. However, recent concerns about market power in restructured electricity markets, airline industry instability amid chronic financial stress, and the challenges created by the repeal of the Glass-Steagall Act, which allowed commercial banks to participate in investment banking, have led to calls for renewed market intervention. __Economic Regulation and Its Reform__ collects research by a group of distinguished scholars who explore these and other issues surrounding government economic intervention. Determining the consequences of such intervention requires a careful assessment of the costs and benefits of imperfect regulation. Moreover, government interventions may take a variety of forms, from relatively nonintrusive performance-based regulations to more aggressive antitrust and competition policies and barriers to entry. This volume introduces the key issues surrounding economic regulation, provides an assessment of the economic effects of regulatory reforms over the past three decades, and examines how these insights bear on some of today’s most significant concerns in regulatory policy. The Past Thirty Years Have Witnessed A Transformation Of Government Economic Intervention In Broad Segments Of Industry Throughout The World. Many Industries Historically Subject To Economic Price And Entry Controls Have Been Largely Deregulated, Including Natural Gas, Trucking, Airlines, And Commercial Banking. However, Recent Concerns About Market Power In Restructured Electricity Markets, Instability Amid Chronic Financial Stress In The Airline Industry, And The Challenges Created By The Repeal Of The Glass-steagall Act, Which Allowed Commercial Banks To Participate In Investment Banking, Have Led To Calls For Renewed Market Intervention. Economic Regulation And Its Reform Collects Research By A Group Of Distinguished Scholars Who Explore A Wide Range Of Issues Surrounding Government Economic Intervention. The Essays Observe That Assessing The Costs And Benefits Of Such Intervention Requires A Careful Analysis Of Its Consequences And A Recognition That Actual Regulation Is Likely To Deviate From The Regulatory Prescriptions Of Economic Theory. The Contributors Point Out That Government Interventions May Take A Variety Of Forms, From Relatively Nonintrusive Performance-based Regulations To More Aggressive Antitrust And Competition Policies And Barriers To Entry. This Volume Introduces The Key Issues Surrounding Economic Effects Of Regulatory Reforms Over The Past Three Decades, And Examines How These Insights Bear On Some Of Today's Most Significant Concerns In Regulatory Policy. -- From Dust Jacket. Foreword: Learning From The Past: Insights For The Regulation Of Economic Activity / Nancy L. Rose -- Antitrust And Regulation / Dennis W. Carlton And Randal C. Picker -- How Airline Markets Work ... Or Do They? Regulatory Reform In The Airline Industry / Severin Borenstein And Nancy L. Rose -- Cable Regulation In The Internet Era / Gregory S. Crawford -- Regulating Competition In Wholesale Electricity Supply / Frank A. Wolak -- Incentive Regulation In Theory And Practice: Electricity Distribution And Transmission Networks / Paul L. Joskow -- Telecommunications Regulation: Current Approaches With The End In Sight / Jerry Hausman And J. Gregory Sidak -- Regulation Of The Pharmaceutical-biotechnology Industry / Patricia M. Danzon And Eric L. Keuffel -- Regulation And Deregulation Of The U.s. Banking Industry: Causes,consequences And Implications For The Future / Randall S. Kroszner And Philip E. Strahan -- Retail Securities Regulation In The Aftermath Of The Bubble / Eric Zitzewitz. Edited By Nancy L. Rose. Includes Bibliographical References And Index. 6. Telecommunications Regulation: Current Approaches with the End in Sight - Jerry Hausman and J. Gregory Sidak7. Regulation of the Pharmaceutical-Biotechnology Industry - Patricia M. Danzon and Eric L. Keuffel; 8. Regulation and Deregulation of the US Banking Industry: Causes, Consequences, and Implications for the Future - Randall S. Kroszner and Philip E. Strahan; 9. Retail Securities Regulation in the Aftermath of the Bubble - Eric Zitzewitz; Contributors; Author Index; Subject Index Collects research that explores issues surrounding government economic intervention, providing an assessment of the economic effects of regulatory reforms over the past three decades and examining how these insights bear on some of today's most significant concerns in regulatory policy.