On Butterflies and Frankenstein: A Dynamic Theory of Regulation
Abstract
There are major differences in regulation among various countries. A particular case is the difference between the EU and US in regulating biotechnology.We develop a formal and dynamic model of government decision-making on regulation. We show that minor differences in consumer preferences can lead to important and persistent regulatory differences, and that temporary shocks to preferences can have long-lasting effects. This hysteresis in regulatory differences is shown to be caused by producer protectionist motives. We argue that this model may contribute to explain the difference between EU and US biotechnology regulation.Download Info
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Paper provided by LICOS - Centre for Institutions and Economic Performance, KU Leuven in its series LICOS Discussion Papers with number 27611.Length:
Date of creation: 2011
Date of revision:
Handle: RePEc:lic:licosd:27611
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Keywords:Other versions of this item:
- Swinnen, Jo & Vandemoortele, Thijs, 2011. "On Butterflies and Frankenstein: A Dynamic Theory of Regulation," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/309692, Katholieke Universiteit Leuven.
- Swinnen, Jo & Vandemoortele, Thijs, 2011. "On butterflies and Frankenstein: a dynamic theory of regulation," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/301490, Katholieke Universiteit Leuven.
- NEP-ALL-2011-03-05 (All new papers)
- NEP-IND-2011-03-05 (Industrial Organization)
- NEP-MIC-2011-03-05 (Microeconomics)
- NEP-REG-2011-03-05 (Regulation)
References
References listed on IDEASPlease 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.:
- José Benjamin Falck-Zepeda & Greg Traxler & Robert G. Nelson, 2000. "Surplus Distribution from the Introduction of a Biotechnology Innovation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 360-369.
Citations
Blog mentions
As found by EconAcademics.org, the blog aggregator for Economics research:- Why are Europe and the US so different in terms of regulation?
by Economic Logician in Economic Logic on 2011-04-05 14:06:00
Cited by:
- Swinnen, Jo & Vandemoortele, Thijs, 2011.
"Trade and the political economy of food standards,"
Open Access publications from Katholieke Universiteit Leuven
urn:hdl:123456789/289067, Katholieke Universiteit Leuven.
- Johan F. M. Swinnen & Thijs Vandemoortele, 2011. "Trade and the Political Economy of Food Standards," Journal of Agricultural Economics, Wiley Blackwell, vol. 62(2), pages 259-280, 06.
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