Business Red Tape and the Economy

How much does bureaucracy hurt incomes? A lot. Since 2006, the World Bank has compiled the Ease of Doing Business Index – a measure of a country’s regulatory burden across 12 critical areas of running a company that affect virtually all businesses, regardless of sector. But how exactly does bureaucracy distort the economy, and how […]

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The Macroeconomic Impacts of Industrial Regulation

How can governments analyse the broader economic effects of proposed regulations in an interconnected economy? Governments change hundreds if not thousands of regulations and laws every year, ostensibly to protect citizens’ health and safety and to assure the proper functioning of free markets. These regulations are only effective with compliance, which necessarily means that businesses […]

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Monitoring and Evaluation: Bad Indicators lead to Bad Policy Making

Justin Peters over at Slate asks a very good question, “Will Arresting People Who Aren’t Very Drunk Reduce Drunk-Driving Fatalities?“. In regulation development, if a previous restricting policy policy did little to meet the policy objective, it makes little sense to make an even stricter policy. A stricter policy will just create more costs or […]

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Road to Ruin: Tesla vs. Auto Dealers

Tesla Motors, the famed electric vehicle startup from billionaire Elon Musk, is feeling the full brunt of auto dealers associations wielding antiquated regulations. On March 11th, the state of New Jersey, facing complaints from the New Jersey Auto Dealers Association, banned Tesla from selling its electric cars directly over the internet from the factory to […]

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Why Egypt Could Fail

I’ve finally had a chance to read Why Nations Fail by Daron Acemoglu and James Robinson. It provides a useful tool for looking at the President Morsi’s attempt to centralize power in his own office could damage Egypt’s fragile economy. In Why Nations Fail Daron Acemoglu and James Robinson reiterate throughout that politically inclusive institutions, […]

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The Cost of Regulatory Opacity

The Canadian government’s recent blocking of the sale of Progress Energy Resources to Malaysian state-owned Petronas has raised calls to act on the vagueness of the “net benefit” test applied to mergers in Canada over $331 million. The lack of clear criteria for this net benefit test has serious economic implications for investment in Canada. […]

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