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Revolving Doors and Regulatory Complexity

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Regulators often go on to lucrative careers either working for, or selling advice to, the industry they previously policed. We investigate the implications of this phenomenon for the design of regulatory institutions. The policy response of cooling-off periods (as used in the UK, US, France and elsewhere) is often welfare-reducing. Capping advisory fees is shown to be a better solution.

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Paper provided by Department of Economics, Royal Holloway University of London in its series Royal Holloway, University of London: Discussion Papers in Economics with number 99/1.

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Length: pages
Date of creation: Feb 2000
Date of revision: Feb 2000
Handle: RePEc:hol:holodi:9901

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Keywords: Regulatory institutions - expert advice;

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