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Anticipated versus Realized Benefits: Can Event Studies be Used to Predict the Impact of New Regulations?

Author

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  • Kara M. Reynolds

    (Department of Economics, American University)

Abstract

Economists often use event study methodology to evaluate the impact of new regulations on firms. This research investigates the degree to which event study methodology can provide useful information in this regard by studying how accurately markets predict the actual benefits associated with a new law.

Suggested Citation

  • Kara M. Reynolds, 2006. "Anticipated versus Realized Benefits: Can Event Studies be Used to Predict the Impact of New Regulations?," Working Papers 2006-02, American University, Department of Economics.
    • Handle: RePEc:amu:wpaper:0206
    DOI: 10.17606/1jqz-xx16
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    File URL: https://doi.org/10.17606/1jqz-xx16
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    References listed on IDEAS

    as
    1. Hartigan, James C & Kamma, Sreenivas & Perry, Philip R, 1989. "The Injury Determination Category and the Value of Relief from Dumping," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 183-186, February.
    2. Aileen J. Thompson, 1993. "The Anticipated Sectoral Adjustment to the Canada-United States Free Trade Agreement: An Event Study Analysis," Canadian Journal of Economics, Canadian Economics Association, vol. 26(2), pages 253-271, May.
    3. Benjamin H. Liebman & Kara M. Reynolds, 2006. "The returns from rent-seeking: campaign contributions, firm subsidies and the Byrd Amendment," Canadian Journal of Economics, Canadian Economics Association, vol. 39(4), pages 1345-1369, November.
    4. Reynolds, Kara M., 2006. "Subsidizing rent-seeking: Antidumping protection and the Byrd Amendment," Journal of International Economics, Elsevier, vol. 70(2), pages 490-502, December.
    5. John J. Binder, 1985. "Measuring the Effects of Regulation with Stock Price Data," RAND Journal of Economics, The RAND Corporation, vol. 16(2), pages 167-183, Summer.
    6. J. Mutti & R. Sampson & B. Yeung, 2000. "The effects of the Uruguay round: empirical evidence from U.S. industry," Contemporary Economic Policy, Western Economic Association International, vol. 18(1), pages 59-69, January.
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    Cited by:

    1. Budzinski, Oliver, 2012. "Impact evaluation of merger control decisions," Ilmenau Economics Discussion Papers 75, Ilmenau University of Technology, Institute of Economics.
    2. Haji Ali Beigi, Maryam & Budzinski, Oliver, 2012. "On the use of event studies to evaluate economic policy decisions: A note of caution," Ilmenau Economics Discussion Papers 80, Ilmenau University of Technology, Institute of Economics.

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    More about this item

    Keywords

    Byrd Amendment; Antidumping; Event Study;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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