The Design of Regulations Expressed as Ratios or Percentage Quotas
Regulations (such as pollution standards) are frequently expressed as a uniform ratio between a target variable and a base variable. The efficient form of such regulations is firm-specific. When firms are very different in size, large firms typically should face a relatively more stringent constraint, but this ranking may easily reverse when firms are more similar. Efficiency costs of uniform ratio standards are calculated. Copyright 2001 by Kluwer Academic Publishers
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Volume (Year): 19 (2001)
Issue (Month): 3 (July)
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