Document Server@UHasselt >
Research >
Research publications >

Please use this identifier to cite or link to this item: http://hdl.handle.net/1942/12081

Title: The meaning of regulatory costs
Authors: MARNEFFE, Wim
Issue Date: 2011
Publisher: Springer
Citation: European Journal of Law and Economics, 32(3). p. 341-356
Abstract: Regulatory costs are an essential aspect of the efficiency and quality of regulations. Moreover, they are a genuine loss of welfare which have a negative effect on national income. Surprisingly, regulatory costs are often neglected or misinterpreted in regulatory assessments, except-though only recently- for administrative compliance costs. One important reason is the lack of a dear and consistent definition as well as a practical and exhaustive typology of regulatory costs. The conceptual paper represents a cost taxonomy that takes into account all costs of regulation. We identify 16 direct and two indirect regulatory cost types. The former are costs borne by society in preparing and implementing regulations. For the government, they consist of information, decision-making, drawing-up, planning, administrative start-up, operational, monitoring, and enforcement costs. Citizens and businesses, on the other hand, incur rent-seeking, information, planning, three types of compliance, delay and enforcement costs. The indirect costs comprise the efficiency loss plus, in the event of poorly designed or market-based regulation, also transaction costs. The neglect of any of these costs may lead to the underestimation of costs in absolute or relative terms and thus no efficient regulatory choices.
URI: http://hdl.handle.net/1942/12081
DOI: 10.1007/s10657-010-9194-7
ISI #: 000295609900002
ISSN: 0929-1261
Category: A1
Type: Journal Contribution
Validation: ecoom, 2012
Appears in Collections: Research publications

Files in This Item:

There are no files associated with this item.

Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.