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The Economics and Politics of Regulation


  • Chang, Ha-Joon


This article provides a critical survey of the literature on the economics and politics of regulation. After some conceptual clarifications, the article surveys the evolution of perspectives on regulation during the post-Second World War period, emphasizing especially the interactions between intellectual changes and real world economic and political developments. It then looks at some themes that are neglected in the current literature--the inevitability of regulation, the need to create (and not simply regulate) markets, distributional issues, dynamic considerations, and the politics of regulation--and suggests that incorporating these themes more closely into the discussion will improve our understanding in this area. Copyright 1997 by Oxford University Press.

Suggested Citation

  • Chang, Ha-Joon, 1997. "The Economics and Politics of Regulation," Cambridge Journal of Economics, Oxford University Press, vol. 21(6), pages 703-728, November.
  • Handle: RePEc:oup:cambje:v:21:y:1997:i:6:p:703-28

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    References listed on IDEAS

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    5. Tobias Adrian & Hyun Song Shin, 2010. "The changing nature of financial intermediation and the financial crisis of 2007-09," Staff Reports 439, Federal Reserve Bank of New York.
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    8. Reinhart, Karmen & Rogoff, Kenneth, 2009. ""This time is different": panorama of eight centuries of financial crises," Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 1, pages 77-114, March.
    9. Marc Flandreau, 1997. "Central Bank Cooperation in Historical Perspective: A Sceptical View," Economic History Review, Economic History Society, vol. 50(4), pages 735-763, November.
    10. Stephen G. Cecchetti, 2009. "Crisis and Responses: The Federal Reserve in the Early Stages of the Financial Crisis," Journal of Economic Perspectives, American Economic Association, vol. 23(1), pages 51-75, Winter.
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    Cited by:

    1. Jamasb, Tooraj, 2006. "Between the state and market: Electricity sector reform in developing countries," Utilities Policy, Elsevier, vol. 14(1), pages 14-30, March.
    2. Ha-Joon Chang & Ali Cheema & L. Mises, 2002. "Conditions For Successful Technology Policy In Developing Countries—Learning Rents, State Structures, And Institutions," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 11(4-5), pages 369-398.
    3. Al-Jarhi, Mabid, 2014. "Towards an Economic Theory of Islamic Finance Regulation," MPRA Paper 66744, University Library of Munich, Germany, revised 2014.
    4. Al-Jarhi, Mabid Ali M. M., 2016. "An Economic Theory of Islamic Finance Regulation," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 24, pages 1-44.
    5. Jamasb, T., 2002. "Reform and Regulation of the Electricity Sectors in Developing Countries," Cambridge Working Papers in Economics 0226, Faculty of Economics, University of Cambridge.
    6. João Lizardo de Araújo, 2001. "A questão do investimento no Setor Elétrico Brasileiro: reforma e crise [The investment in the Brazilian power sector: reform and crisis]," Nova Economia, Economics Department, Universidade Federal de Minas Gerais (Brazil), vol. 11(1), pages 77-96, July.
    7. Silvia Sacchetti, 2015. "Inclusive and Exclusive Social Preferences: A Deweyan Framework to Explain Governance Heterogeneity," Journal of Business Ethics, Springer, vol. 126(3), pages 473-485, February.
    8. Tomaso Duso, 2002. "On the Politics of the Regulatory Reform: Econometric Evidence from the OECD Countries," CIG Working Papers FS IV 02-07, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
    9. Kross, Karmo, 2013. "Developmental welfare capitalism in East Asia with a special emphasis on South Korea," Discourses in Social Market Economy 2013-05, OrdnungsPolitisches Portal (OPO).
    10. Valkonen, Laura, 2006. "Deregulation as a Means to Increase Competition and Productivity," Discussion Papers 1014, The Research Institute of the Finnish Economy.
    11. Norbert Knoll, 1998. "Innovation and Regulation in the Telecommunications Sector," Austrian Economic Quarterly, WIFO, vol. 3(2), pages 101-109, April.
    12. Norbert Knoll, 1999. "Liberalisation Demands Regulatory Reform," WIFO Monatsberichte (monthly reports), WIFO, vol. 72(11), pages 743-751, November.
    13. Sheil, Christopher, 2004. "'An incomplete hypothesis': deregulation of water and sewerage in Australia," Utilities Policy, Elsevier, vol. 12(3), pages 153-164, September.
    14. Norbert Knoll, 1998. "Innovation and Regulation in Telecommunications," WIFO Monatsberichte (monthly reports), WIFO, vol. 71(3), pages 187-195, March.
    15. Nepal, Rabindra & Jamasb, Tooraj, 2012. "Reforming small electricity systems under political instability: The case of Nepal," Energy Policy, Elsevier, vol. 40(C), pages 242-251.

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