Deregulation: from Theory to Practice

In this lecture I will do three things. First, I will argue why we should expect modern economies to be over-regulated. Sometimes grossly so. Second, I will show how standardmicroeconomic ideas – asymmetric information, externalities, public goods, monopoly power – which typically are used to justify regulation must be seen under a different light. In fact we will argue that they can be turned inside out and offer a road map for deregulation. In turn, I will illustrate how they have guided concrete reforms in Argentina during the Milei administration. Third, I will offer a practical “blueprint” for deregulation: if you are in country X and want to deregulate, how would you go about actually doing it?