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U.S. Industry Adjustment to Economic Deregulation

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Author Info
Winston, Clifford

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Abstract

This paper develops a framework to analyze the long-run adjustment of U.S. industries to economic deregulation, highlighting the role of intensified competition, innovations in operations, marketing, and technology, and adjustments to external shocks. The author applies this framework to industries that have recently undergone substantial deregulation--airlines, motor carriers, railroads, banks, and natural gas--and concludes that these industries have become far more efficient because of deregulation and provided large benefits to consumers. He concludes that the same adjustment process and positive outcome for consumers will result from the forthcoming deregulation of communications and electricity. Copyright 1998 by American Economic Association.

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Publisher Info
Article provided by American Economic Association in its journal Journal of Economic Perspectives.

Volume (Year): 12 (1998)
Issue (Month): 3 (Summer)
Pages: 89-110
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Handle: RePEc:aea:jecper:v:12:y:1998:i:3:p:89-110

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Harris, Robert G & Kraft, C Jeffrey, 1997. "Meddling Through: Regulating Local Telephone Competition in the United States," Journal of Economic Perspectives, American Economic Association, vol. 11(4), pages 93-112, Fall. [Downloadable!] (restricted)
  2. Nickell, Stephen J, 1996. "Competition and Corporate Performance," Journal of Political Economy, University of Chicago Press, vol. 104(4), pages 724-46, August. [Downloadable!] (restricted)
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  3. P. Joskow, 1974. "Inflation and Environmental Concern: Structural Change in the Process of Public Utility Price Regulation," Working papers 128, Massachusetts Institute of Technology (MIT), Department of Economics.
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  4. Herbert, John H & Kreil, Erik, 1996. "US natural gas markets : How efficient are they?," Energy Policy, Elsevier, vol. 24(1), pages 1-5, January. [Downloadable!] (restricted)
  5. Jayaratne, Jith & Strahan, Philip E, 1998. "Entry Restrictions, Industry Evolution, and Dynamic Efficiency: Evidence from Commercial Banking," Journal of Law & Economics, University of Chicago Press, vol. 41(1), pages 239-73, April.
  6. Noll, Roger G., 1989. "Economic perspectives on the politics of regulation," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 22, pages 1253-1287 Elsevier. [Downloadable!] (restricted)
  7. Jerry A. Hausman, 1997. "Valuing the Effect of Regulation on New Services in Telecommunications," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 28(1997-1), pages 1-54. [Downloadable!]
  8. Roger G. Noll, . "The Economics and Politics of the Slowdown in Regulatory Reform," Working Papers 1, Brookings Institution Domestic Economics. [Downloadable!]
  9. Winston, Clifford, 1993. "Economic Deregulation: Days of Reckoning for Microeconomists," Journal of Economic Literature, American Economic Association, vol. 31(3), pages 1263-89, September. [Downloadable!] (restricted)
  10. Allen N. Berger & Anil K. Kashyap & Joseph Scalise, 1995. "The Transformation of the U.S. Banking Industry: What a Long, Strange Trip It's Been," Center for Financial Institutions Working Papers 96-06, Wharton School Center for Financial Institutions, University of Pennsylvania.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Clifford Winston, 2000. "Government Failure in Urban Transportation," Fiscal Studies, Institute for Fiscal Studies, vol. 21(4), pages 403-425, December. [Downloadable!]
  2. Massey, Patrick, 2007. "Delayed Indefinitely: Regulatory Reform of the Irish Bus Industry," Quarterly Economic Commentary: Special Articles, Economic and Social Research Institute (ESRI), vol. 2007(1-Spring), pages 38-61. [Downloadable!]
  3. Hahn, Robert W, 1998. "Policy Watch: Government Analysis of the Benefits and Costs of Regulation," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 201-10, Fall. [Downloadable!] (restricted)
  4. Davis, David E. & Wilson, Wesley W., 2005. "Wages in Rail Markets: Deregulation, Mergers, and Changing Network Characteristics," MPRA Paper 7663, University Library of Munich, Germany. [Downloadable!]
    Other versions:
  5. Dyck, Alexander & Morse, Adair & Zingales, Luigi, 2007. "Who Blows the Whistle on Corporate Fraud?," CEPR Discussion Papers 6126, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  6. Bonardi, Jean-Philippe, 2008. "The internal limits to firms' nonmarket activities," MPRA Paper 14500, University Library of Munich, Germany. [Downloadable!]
  7. Yongil Jeon & Stephen M. Miller, 2002. "Has Deregulation Affected Births, Deaths, and Marriages in the U.S. Commercial Banking Industry?," Working papers 2002-26, University of Connecticut, Department of Economics. [Downloadable!]
    Other versions:
  8. Guasch, J. Luis & Hahn, Robert W., 1997. "The costs and benefits of regulation : implications for developing countries," Policy Research Working Paper Series 1773, The World Bank. [Downloadable!]
    Other versions:
  9. Francine Lafontaine & Laura Malaguzzi Valeri, 2009. "The deregulation of international trucking in the European Union: form and effect," Journal of Regulatory Economics, Springer, vol. 35(1), pages 19-44, February. [Downloadable!] (restricted)
  10. Michael Raith, 2003. "Competition, Risk, and Managerial Incentives," American Economic Review, American Economic Association, vol. 93(4), pages 1425-1436, September. [Downloadable!]
  11. Wilson, Wesley W. & Wilson, William W., 1998. "Deregulation And Innovation In Railroad Shipping Of Agricultural Commodities: 1972-1995," AE Series 23090, North Dakota State University, Department of Agribusiness and Applied Economics. [Downloadable!]
  12. John Schneider, 2003. "Changes in the Effects of Mandatory Rate Regulation On Growth in Hospital Operating Costs, 1980–1996," Review of Industrial Organization, Springer, vol. 22(4), pages 297-312, June. [Downloadable!] (restricted)
  13. Andrei Shleifer, 1998. "State Versus Private Ownership," NBER Working Papers 6665, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  14. Juergen Janger, 2005. "Sectoral Regulation in Austria before and after EU Accession — The Network Industries as a Case in Point," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 2, pages 178-195, August. [Downloadable!]
  15. Robert L. Lacy & John R. Walter, 2002. "What can price theory say about the Community Reinvestment Act?," Economic Quarterly, Federal Reserve Bank of Richmond, issue Spr, pages 1-27. [Downloadable!]
  16. Sumner J. La Croix, 2002. "Liberalizing and Integrating Aviation Markets in Northeast Asia: Prospects and Perils," Working Papers 200202, University of Hawaii at Manoa, Department of Economics. [Downloadable!]
  17. Alexander Dyck & Adair Morse & Luigi Zingales, 2007. "Who Blows the Whistle on Corporate Fraud?," NBER Working Papers 12882, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  18. J. Mulherin, 2005. "Corporations, collective action and corporate governance: One size does not fit all," Public Choice, Springer, vol. 124(1), pages 179-204, July. [Downloadable!] (restricted)
  19. repec:bep:eaptop:v:3:y:2003:i:1:p:1122-1122 is not listed on IDEAS
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