Journal of Economic Literature
ISSN 0022-0515 (Print) | ISSN 2328-8175 (Online)
The Rise of the Regulatory State
Journal of Economic Literature
vol. 41,
no. 2, June 2003
(pp. 401–425)
Abstract
The Progressive Era of the early twentieth-century U.S. saw significant growth of government regulation of business. We model the choice of law enforcement strategy between private litigation over accidents, regulation of precautions, a combination of the two, and doing nothing. Any of these strategies can be subverted by private parties, at a cost. Private litigation may be more vulnerable to subversion than regulation, especially as the scale of enterprise grows. The rise of regulation is seen as an efficient response to subversion of justice. The model makes sense of the progressive reform agenda. It may also help explain what institutions of law and order are appropriate in what circumstances-a crucial issue for transition economies and emerging markets.Citation
Glaeser, Edward, L., and Andrei Shleifer. 2003. "The Rise of the Regulatory State ." Journal of Economic Literature, 41 (2): 401–425. DOI: 10.1257/002205103765762725JEL Classification
- H11 Structure, Scope, and Performance of Government
- N41 Economic History: Government, War, Law, International Relations, and Regulation: U.S.; Canada: Pre-1913
- L00 Industrial Organization: General
- L51 Economics of Regulation
- N42 Economic History: Government, War, Law, International Relations, and Regulation: U.S.; Canada: 1913-