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Production costs and deregulation

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  • John Lott
  • Morgan Reynolds
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    Abstract

    Unlike some of the existing literature, our discussion implies that either (1) regulation lowers production costs and makes the gains to deregulation relatively small or (2) regulation increases production costs and makes the social and political gains to deregulation relatively greater. While some may not find alternative (1) credible, one thing is clear: claiming that the deregulatory gains are small because regulation increases costs is not an alternative society faces. Copyright Kluwer Academic Publishers 1989

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    File URL: http://hdl.handle.net/10.1007/BF00115665
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    Bibliographic Info

    Article provided by Springer in its journal Public Choice.

    Volume (Year): 61 (1989)
    Issue (Month): 2 (May)
    Pages: 183-186

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    Handle: RePEc:kap:pubcho:v:61:y:1989:i:2:p:183-186

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    Web page: http://www.springerlink.com/link.asp?id=100332

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    1. Marilyn R. Flowers, 1987. "Rent Seeking and Rent Dissipation: A Critical View," Cato Journal, Cato Journal, Cato Institute, vol. 7(2), pages 431-440, Fall.
    2. McCormick, Robert E & Shughart, William F, II & Tollison, Robert D, 1984. "The Disinterest in Deregulation," American Economic Review, American Economic Association, vol. 74(5), pages 1075-79, December.
    3. Jarrell, Gregg A, 1984. "Change at the Exchange: The Causes and Effects of Deregulation," Journal of Law and Economics, University of Chicago Press, vol. 27(2), pages 273-312, October.
    4. Lott, John R, Jr, 1987. "Licensing and Nontransferable Rents," American Economic Review, American Economic Association, vol. 77(3), pages 453-55, June.
    5. George J. Stigler, 1971. "The Theory of Economic Regulation," Bell Journal of Economics, The RAND Corporation, vol. 2(1), pages 3-21, Spring.
    6. Cherkes, Martin & Friedman, Joseph & Spivak, Avia, 1986. "The Disinterest in Deregulation: Comment," American Economic Review, American Economic Association, vol. 76(3), pages 559-63, June.
    7. Moore, Thomas Gale, 1986. "U.S. Airline Deregulation: Its Effects on Passengers, Capital, and Labor," Journal of Law and Economics, University of Chicago Press, vol. 29(1), pages 1-28, April.
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