UNIVERSITY OF CHICAGO Graduate School of Business
B 33202/PP46300 Economics of Regulation/Deregulation Mr. Peltzman Winter '05
Bibliography and Course Outline
About this Bibliography
As you can see from its length, this is no ordinary reading list. You can safely ignore most of it, and I will ignore much of it in class. The list is a broad sample of what economists think they know about government regulation. The list has a variety of uses:
1. A traditional reading list. I will follow the topic outline in class, and I will expect you to read the articles in the packet. These are preceded by (P#..).
2. I will sometimes discuss results from articles that are on this list but are not in the packet. I will try to indicate the source of the results I discuss as I go along.
3. Most important, you can use the list to browse for ideas for the term paper (see Term Paper below).
About the Course
The course uses economic theory to analyze the behavior of regulatory agencies and regulated (and deregulated) firms. The first two weeks or so reviews the history of some of the basic theory of regulation (and politics). A disproportionate share of the required reading is about the material covered in the first two weeks. The rest of the course is a series of case studies on specific kinds of regulation. These will include material on the history of regulatory institutions and on how regulated firms and their regulators work But these case studies are intended primarily to be examples of how economists apply theory to understand real world behavior. So, while the course may help you learn how to run a railroad, think of it first and foremost as applied price theory.
Term Paper
All students, except those registering for R, are expected to submit a term paper. (Penalties for not submitting a paper are described below under Exams/Grades.) The paper will count for 40 percent of your grade. It is intended to give you a chance to confront a specific problem with data. I do not want you to simply tell me what someone else said about a problem. I want you to tell me what you have found out.
I am flexible about topics. Some of you already have specific interests. Others can develop interests by browsing the bibliography or from classroom material. Most of the articles in this bibliography are empirical. You can, if you like, take any empirical article in the bibliography and simply try to reproduce the results (or extend them to another time or place). (Note: This bibliography emphasizes empirical articles written in the last 10 years or so. If you want 2 more references to previous work go to the class web-site and look for the file labeled BIB306.02.doc.) However, most any topic is OK if it's remotely related to the course content. All I ask is that you check your topic out with me before starting.
Please do not think of the paper as a formidable obstacle to be put off as long as possible in the hope that it will go away. I expect you to do some original work, but I do not expect an extensive treatment. About 10 pages or so ought to be enough to a) describe your problem, b) describe your solution and c) summarize your findings.
Late papers will be accepted, but only until the end of the Spring quarter. In addition, late papers are subject to the following penalty schedule: All papers are graded on a numerical scale. If your paper is handed in after March 17 (i.e., 3 days after the final exam), your numerical score will be divided by:
1.10 if I receive the paper by April 1 1.15 if I receive the paper by April 29 1.20 if I receive the paper by June 10 if I receive the paper thereafter.
Exams/Grades
There is only one exam. It will be given Monday March 14 at 3PM. There are no make-ups or other non-scheduled exams for any student for any reason. The exam score is based on your relative standing in the class and counts for 60 percent of your grade.
Exams are "closed book" and contain a mix of essay and objective questions. Examples of recent exams (and answer outlines) are in the course packet
If you do not hand in a paper by June 11 your final exam score will be multiplied by .6 to determine your relative standing in the class. This multiplier =. 65 if you indicate on the final exam that you wish to give up the option of submitting a paper. Effectively, this means that students who do not hand in a paper are likely to receive a grade of “C”.
Grades will conform to a policy adopted by the GSB faculty that the average GPA in the class shall not exceed 3.25. Grades will be distributed approximately 1/3 A, 1/2 B, 1/6 C or less.
Pursuant to a vote of the students and faculty of the GSB, students registered in the GSB will be expected to sign the following statement appearing on the final exam: "I pledge my honor that I have not violated the GSB Honor Code during this examination." If necessary, please familiarize yourself with the GSB Honor Code.
Students may submit written requests for regrading of exams within one week of the start of the Spring quarter. This should state briefly the basis of the request. My policy is to correct only substantial errors in grading, not to eliminate all of the random elements inherent in the grading of essay questions. Therefore, the following policy is observed. 3
1. The entire exam will be regraded and the score may be adjusted up or down. 2. However, only changes beyond ± 4 percent of the maximum score are recorded. 3. Requests for correction of clerical errors are exempt from 1. and 2.
Prerequisites
B33001 (intermediate level price theory) and B36101 (basic calculus), or equivalent. Also, knowledge of basic statistics, including regression analysis (e.g. B41000 or B41100, is necessary for interpreting readings, class material and in doing term papers.
Office Hours
By appointment. Please contact me by e-mail ( [email protected] ) at least a day in advance. I try to reply to any e-mail query within a day
Please turn off cell phones or other noisy electronic devices BEFORE coming to class.
The reading list uses the following journal and publisher abbreviations:
AER -- American Economic Review BJ or RJ -- Bell Journal of Economics and Mgt. Science (later RAND Journal) ET -- Econometrica EA -- Economica HIO -- Handbook of Industrial Organization (Schmalensee & Willg, eds.), v. 2. JB -- Journal of Business JEL -- Journal of Economic Literature JEP -- Journal of Economic Perspectives JOLE -- Journal of Labor Economics JLE -- Journal of Law and Economics JPE -- Journal of Political Economy JRE -- Journal of Regulatory Economics MDE -- Managerial and Decision Economics PC -- Public Choice QJE -- Quarterly Journal of Economics RES -- Review of Economics and Statistics RIO -- Review of Industrial Organization
AEI -- American Enterprise Institute BR -- Brookings Institution BRP -- Brookings Papers on Economic Activity-Microeconomics WSJ --Wall Street Journal NYT -- New York Times
(Weeks I. Introduction 4
1 & 2) 1. The Classic Case for Economic Regulation – and its breakdown
Hotelling, "The General Welfare in Relation to Problems of Taxation and Railway and Utility Rates," ET, July 38.
(P#1) Noll, "Economic Perspectives on the Politics of Regulation," HIO.
(P#2) Stigler & Friedland, "What Can Regulators Regulate? The Case of Electricity," JLE, Oct. 62.
Moore, "The Effectiveness of Regulation of Electric Utility Prices," Southern Econ. Journal, 1970.
(P#3) Joskow & Rose, "The Effects of Economic Regulation," HIO.
2. The Economic Theory of Regulation
(P#4) Stigler "The Theory of Economic Regulation," BJ, Spring 71.
(P#5) Posner, "Taxation by Regulation," BJ, Sp. 71.
Posner, "Theories of Economic Regulation," BJ, Autumn. 74.
(P#6) Peltzman, "Towards a More General Theory of Regulation," JLE, Aug. 76.
(P#7) Jordan, "Producer Protection, . . ." JLE, Apr. 72.
Noll & Joskow, "Regulation in Theory and Practice," in Fromm (ed.) Studies in Public Regulation. (A review of the early literature.)
(P#8) Becker, "A Theory of Competition Among Pressure Groups," QJE, August 1983.
(P#9) Peltzman, "The Economic Theory of Regulation after a Decade of Deregulation,"BRP, 1989.
(P#10) Winston "Economic Deregulation: Days of Reckoning for Microeconomists" JEL 9/93. (Summary of estimates of effects of deregulation).
Winston "US Industry Adjustment to Deregulation," JEP Summer 98 (summary and update of material in preceding article)
Peltzman "George Stigler's Contribution to the Economics of Regulation" JPE, 10/93.
(P#11) WSJ, Nov. 30, 1995 5
(Weeks II. Public Utility Regulation: Electricity, Gas, Telecommunication, Broadcasting 3 & 4) 1. The Natural Monopoly Rationale for Regulation (see readings in I. 1)
a. Evidence on Economies of Scale
Boiteaux, "Electric Energy: Facts, Problems and Prospects," in J. R. Nelson (ed.) Marginal Cost Pricing in Practice.
Nerlove, "Returns to Scale in Electricity Supply," in C. Christ et al., Measurement in Economics.
Christensen and Greene, "Economies of Scale in the U.S. Power Industry, JPE, July 76.
Shin and Ying "Unnatural Monopolies in Local Telephone," RJ Sum. '92.
Wilson and Zhou “Costs, Productivity … in Local Telephone Markets, JRE 5/97.
2. The Welfare Economics of Rate Regulation--what is the "correct" regulated price?
a. Marginal or Average Cost Pricing
Coase, "The Theory of Public Utility Pricing and Its Application," BJ, Spring '70.
b. Multipart Pricing and Price Discrimination
Panzar and Willig, "Free Entry and the Sustainability of Natural Monopoly," BJ, Spring '77.
Baumol and Bradford, "Optimal Departures from Marginal Cost Pricing," AER, June 70.
c. Peak Load Pricing
Boiteux, "Peak Load Pricing," JB, Apr. 60.
Mitchell, Manning, Acton, Peak Load Pricing.
Acton and Mitchell, "Evaluating Time-of-Day Electric Rates" in Mitchell and Kleindorfer, Regulated Industries and Public Enterprise.
Taylor & Schwarz "The Long Run Effects of Time-of-use Charges" RJ Autumn '90.
3. The Effects of Regulation and Public Ownership 6 a. On Rates
1. Electricity
(P#2) Stigler and Friedland, "What Can Regulators Regulate?"
Moore, "The Effectiveness of Regulation of Electric Utility Prices."
Jarrell, "The Demand for State Regulation of Electricity," JLE, Oct. 78.
Dnes et al “The Regulation of the UK Electricity Industry: an Event Study,” JRE 5/98.
2. Telecommunications
Crandall & Waverman, Talk is Cheap, BR (a review of telecommunications regulation).
“Telecom Regulation Around the World” JEP, Fall ’97 (more overview on telecom regulation).
Taylor & Zona, “Analysis of Competition in Long Distance Telephone Markets” JRE 5/97.
Temin "Cross Subsidies in the Telephone Network after Divestiture, JRE 12/90.
Garbacz & Thompson “Assessing the Impact of FCC Lifeline Programs” JRE 1/97.
MacAvoy “Testing for Competitiveness of Markets for Long distance….” RIO, 6/98.
3. Cable & Broadcasting
Rubinovitz "Market Power & Price Increases for Basic Cable Service Since Deregulation," RJ Sp. 93.
Prager "The Effects of Deregulating Cable Television: Evidence from the Financial Markets" JRE, 12/92.
Carroll & Lamoin "Measuring Market Response to Regulation of Cable TV" JRE 12/93.
Vita, “Must Carry Regulation for Cable TV” JRE 9/97.
Emmons and Prager “Effects of Market Structure…on Prices…in Cable TV” RJ Win 97.
The Law and Econ of Property Rights to Radio Spectrum, JLE 10/98 (Special issue on allocation of the spectrum)
Brunner, "Free Riders…? Voluntary Provision of Public Radio," PC 12/98 7
Beard et al, “Price Quality Tradeoffs in Cable,” JRE Sep 01
4. Other
Sawkins, “Balancing Multiple Interest in Regulation: An Event Study of the English and Welsh Water Industry,” JRE, 5/96.
b. On the Allocation of Resources in Production .
(1) “Overcapitalization”
Averch and Johnson, "The Behavior of the Firm under Regulatory Constraint," AER, Dec 62.
Spann, "Rate of Return Regulation and Efficiency in Production," BJ, Spring '74.
Courville, "Regulation and Efficiency in the Electric Utility Industry," BJ, Spring '74.
Baron and Taggart, "A Model of Regulation under Uncertainty and a Test for Regulatory Bias," BJ, Sp. 77.
Petersen, "An Empirical Test of Regulatory Effects," BJ, Spring '75.
Peles & Whittred, “Incentive Effects of Rate-of-Return Regulation: the Case of Hong Kong,” JRE, 7/96.
(2) Labor Costs
Hendricks, "Regulation and Labor Earnings," BJ, Autumn '77.
Ehrenberg, The Regulatory Process and Labor Earnings.
Joskow et. al., "Regulatory Constraints on CEO Compensation" BRP '93.
______, “Political Constraints on Executive Compensation: Evidence from Electric Utilities,” RJ, Spr. 96.
(3) Risk
McLaughlin & Mehran, "Regulation & The Market for Corporate Control: Hostile Tender Offers for Utilities" JRE 9/95.
Norton, "Regulation and Systematic Risk: The Case of Electric Utilities," JLE, October 85.
Binder and Norton, "Regulation, Profit Variability and Beta," JRE 5/99
Nwaeze, “Deregulation of Electric Power: Earnings Risk and Return,” JRE Jan 00 8
(4) Other Resource Allocation Effects
Chipty, “Vertical Integration in Cable,” AER Jun 01 c. Public Ownership (of Utilities and Firms in Other Industries )
Boardman and Vining, "Ownership and Performance: Comparison of Private and State Owned Enterprise," JLE 4/89.
Berry "Private Ownership ... and Efficiency: Electric Coops v. Investor Owned Utilities" JRE 12/94.
Lopez, Shleifer, Vishny, “Privatization in the U.S.,” RJ Aut. ’97.
Majumdar “Assessing Comparative Efficiency of State Owned and Private Firms in India” PC 7/98.
Karlaftis and McCarthy, "The Effect of Privatization on Public Transit Costs," JRE 7/99
Ros, "Does Ownership or Competition Matter? Effects of Telecom Reform on Network Expansion and Efficiency," JRE 1/99
La Porta and Lopez-de-Silanes, "The Benefits of Privatization in Mexico," QJE 11/99
Frydman et al, "When Does Privatization Work? Corporate Performance in the Transition Economies," QJE 11/99
Megginson and Netter, "From State to Market: A Survey of Empirical Studies on Privatization," Bourse de Paris1999 [available on class website]
Saal & Parker, “Productivity and Price in the Privatized Water Companies of England & Wales, JRE Jul 01
4. Alternatives to Rate-Base Regulation
Demsetz, "Why Regulate Utilities?" JLE, 1968.
Prager, "Franchise Bidding: The Case of Cable TV," JRE 6/89.
Kridel et.al., “The Effects of Incentive Regulation in Telecommunications: A Survey,” JRE, 5/96.
Majumdar, “Incentive Regulation & Production Efficiency in US Telecom Industry” JB 10/97. 9
Ai & Sappington, “Impact of Incentive Regulation on US Telecom Industry” JRE 9/02
Beesley and Littlechild, "The Regulation of Privatized Monopolies in the UK," RJ, Autumn '89.
Berg & Jeong, "An Evaluation of Incentive Regulation" JRE 3/91.
Liston, "Price-Cap v. Rate-of-Return Regulation" JRE 3/93.
5. Deregulation and Regulatory Reform
White, “Power Struggles: Explaining Deregulatory Reforms in Electricity” BRP, ’96.
Joskow, "Regulatory Failure, Regulatory Reform and Structural Change in the Electric Power Industry," BRP '89.
______, “Deregulation and Regulatory Reform in Electric Power,” in Peltzman and Winston (eds.) Deregulation of Network Industries
Crandall and Hausman, “Competition in US Telecom: Effects of the 1996 Law,” in Peltzman and Winston (eds.) Deregulation of Network Industries
Kaserman et.al. "The Political Economy of Deregulation: The Case of Intrastate Long Distance" JRE 3/93.
Wolfram, "Strategic Bidding..to Supply Electricity in England and Wales," RJ Winter 98
Erenrich and Caves, "Competition in Payphones" JRE 11/98
Borenstein et al “Measuring Inefficiencies in California’s Restructured Electricity Market” AER 12/02
______“Understanding California’s Restructuring Disaster” JEP Win 02
(P#12 through P#16) WSJ June 19, 1996, NYT October 28, 1999, WSJ Nov 27, 2000, WSJ Jan 13, 1999, WSJ Feb 11, 2002
6. Natural Gas and Petroleum
MacAvoy, "The Regulation Induced Shortage of Natural Gas," JLE, Apr. 71.
Smith, Bradley and Jarrell, "Studying Firm-Specific Effects of Regulation: Oil Price Regulation," RJ Winter 1986.
Granderson & Linvill, “The Impact of Regulation on Productivity: Interstate Natural Gas,” 10
JRE, 11/96.
Kleit “Did Open Access Integrate Natural Gas Markets?” JRE 7/98.
(Weeks III. Transportation Regulation 4 to 7)
A. Surface Freight
1. The Origins of Regulation
a. The Interstate Commerce Act.
MacAvoy, The Economic Effects of Regulation: The Trunkline Railroad Cartels . . .
Kolko, Railroads & Regulation.
Gilligan, Marshall, Weingast, "Regulation and the Theory of Legislative Choice: The Interstate Commerce Act of 1887," JLE 4/89.
______, "The Economic Incidence of the Interstate Commerce Act," RJ Summer '90.
Mullin, “Railroad Revisionists Revisited: Stock Market Evidence from the Progressive Era, JRE Jan 00
b. Are Railroads a Natural Monopoly?
Spann & Erickson, "The Economics of Railroading," BJ, Autumn. 70.
Keeler, "Railroad Costs Returns to Scale and Excess Capacity," RES, May 74.
Harris, "Economies of Traffic Density in Rail Freight," BJ, Autumn. 77.
2. The Effects of Regulation and Deregulation
a. Railroads
1. Before Deregulation
Meyer, et al., The Economics of Competition in Transport Industries.
Friedlaender, The Dilemma of Freight Transport Regulation. 11
Garrod and Miklius, "Captive Shippers and the Success of Railroads in Capturing Monopoly Rent," JLE, Oct. 87.
Winston, "Welfare Effects of ICC Regulation Revisited," BJ, SP 81.
Levin, "Allocation in Surface Freight Transportation," BJ, Spring 1978.
Filipinni & Maggi "Efficiency & Regulation in the Case of the Swiss Private Railways" JRE 6/93.
(P#17) Packet NYT Feb 20, 1997
2. After Deregulation
Levin, "Railroad Rates, Profitability and Welfare Under Deregulation," BJ, SP 81.
Levin, "Regulation Barriers to Exit and Investment Behavior in Railroads," in Fromm Studies in Public Regulation.
McFarland, "The Effects of U.S. Railroad Deregulation..." JRE 9/89.
Burton, "Railroad Deregulation, Carrier Behavior and Shipper Response." JRE 12/93.
Wilson “Cost Savings & Productivity in the Railroad Industry” JRE 1/97.
Davis and Wilson, "Deregulation, Mergers and Employment in the RR Industry," JRE 1/99
Grimm and Winston, “Competition in the Deregulated Railroad Industry,” in Peltzman and Winston (eds.) Deregulation of Network Industries (BR-AEI)
Ellig “Railroad Deregulation & Consumer Welfare” JRE 3/02
b. Trucking
1. Before Deregulation
Sloss, "Regulation of Motor Freight Transportation," BJ, Autumn. 70.
Moore "The Beneficiaries of Trucking Regulation," JLE, Oct. 78.
Rose, "The Incidence of Regulatory Rents in the Motor Carrier Industry," RJ, Aut'85.
Frew, "The Existence of Monopoly Profits in the Motor Carrier Industry," JLE, Oct 81. 12
2. After Deregulation Kim, "The Beneficiaries of Trucking Regulation Revisited," JLE April '84.
Rose, "Labor Rent Sharing and Regulation: The Trucking Industry," JPE, December 87.
Peoples, “Deregulation and the Labor Market,” JEP, Summer, 98.
Schipper, Thompson and Weil, "Disentangling Interrelated Effects of Regulatory Change: Motor Carrier Deregulation," JLE 4/87.
Winston, et. al., The Economic Effects of Surface Freight Deregulation, BR. (also discusses railroads) Traynor & McCarthy "Trucking Deregulation and Highway Safety" JRE 12/91.
Heywood & Peoples "Deregulation and The Prevalence of Black Truck Drivers" JLE 4/94.
Daniel & Kleit, "Disentangling Regulatory Policy: The Effects of State Regulation on Trucking Rates," JRE 9/95.
Peoples & Peteraf, "Deregulation and the Competitive Fringe: Owner-Operators in Trucking" JRE 1/95.
B. Airlines
1. Before Deregulation
Caves, Air Transport and Its Regulators.
Keyes, Federal Control of Entry into Air Transportation.
(P#18) Keeler, "Airline Regulation and Market Performance," BJ Autumn. 72.
Douglas and Miller, Economic Regulation of Domestic Air Transport.
Douglas and Miller, The CAB's Domestic Passenger Fare Investigation, BJ Sp. '74.
De Vaney, "The Effect of Price and Entry Regulation on Airline Output and Efficiency," BJ, Sp. 75.
CAB Practices and Procedures, U.S. Senate Subcte. on Administrative Practice, Cte. on Judiciary, 1975. 13
2. After Deregulation
Bailey, Graham and Kaplan, Deregulating the Airlines.
Spiller, "The Differential Impact of Airline Regulation on Individual Firms," JLE, 10/83.
Morrison and Winston, The Economic Effects of Airline Deregulation, BR.
______, “Causes & Consequences of Airline Fare Wars,” BRP ’96.
______, “The Remaining Role for Government in the Deregulated Airline Industry,” in Peltzman and Winston (eds.) Deregulation of Network Industries (BR-AEI)
Moore, "U.S. Airline Deregulation: Effects on Passengers, Capital and Labor," JLE, 4/86.
(P#19) Borenstein "The Evolution of U.S. Airline Competition" JEP, Spring '92.
(P#20 through P#23) Regulation April, 1998, NYT July 15, 1993, WSJ June 18, 2002, WSJ Oct 5, 2004
Beneish "The Effect of Regulatory Changes in the Airline Industry on Shareholder Wealth," JLE, 10/91.
Brueckner & Spiller "Economies of Traffic Density in the Deregulated Airline Industry" JLE 10/94.
3. International Airline Regulation/Deregulation
Pruitt, et. al. “The US International Air Route Award Process” JRE 9/97.
(P#24 through P#26) WSJ Feb 2, 1998; NYT Dec 20, 1995; WSJ Dec 20, 1995
C. Miscellaneous
Smith, "Franchise Regulation: An Economic Analysis of State Restrictions on Automobile Distribution", JLE April '82.
Godek “Regulation of Fuel Economy and The Demand For Light Trucks” JLE 10/97.
(Weeks IV. Environmental Protection 8 & 9) 14
A. Externalities and the Rationale for Regulation
Pigou, The Economics of Welfare, Pt. II, Ch. 9. (P#27) Coase, "The Problem of Social Cost," JLE, 1960.
B. Implementation of Regulation
(1) Techniques of Regulation
Dales, Pollution, Property, and Prices.
(P#28) Cropper and Oates "Environmental Economics: A Survey" JEL, 1992.
Pargal & Wheeler, “Informal Regulation of Pollution in Developing Countries: Indonesia” JPE 12/96.
Joskow et al. “The Market for S02 Emissions,” AER 9/98.
Montero, "Voluntary Compliance with Market-Based Environmental Policy: the US Acid Rain Program," JPE 10/99
SO2 Trading, JEP, Summer 98 (articles on the SO2 allowance program)
Freeman, “Environmental Policy Since Earth Day,” JEP Win 02
(P#29, 30) WSJ Oct 3, 1997; WSJ Jan 16, 2003;
Dion et al “Monitoring of Pollution Regulation,” JRE 1/98.
Brown and Shogren, “Economics of the Endangered Species Act,” JEP, Summer 98.
a (2) Effects of Regulation
Gruenspecht and Lave, "The Economics of Health, Safety and Environmental Regulation," HIO.
Grossman & Krueger, "Economic Growth & The Environment," QJE 5/95.
Greenstone “The Impact of Environmental Regulation on Industrial Activity” JPE 12/02
Henderson, “Effects of Air Quality Regulation,” AER, 9/96.
Hahn & Borick, “Why Energy Transitions Matter: A Case Study of Methanol,” JRE, 3/96. 15
Gupta, et.al., “Paying for Permanence: EPA’s Decisions at Superfund Sites,” RJ, Autumn 96.
Kahn, “New Evidence on Trends in Vehicle Emissions,” RJ, Spring 96.
Lanoie et al “Firm Responses to Effluent Regulation: Pulp and Paper in Ontario,” JRE 3/98.
Sigman, “Midnight Dumping: Public Policies and the Illegal Disposal of Used Oil,” RJ Spring 98.
Metrick and Weitzman “Conflicts and Choices in Biodiversity Preservation,” JEP, Summer 98.
Viscusi and Hamilton, "Are Risk Regulators Rational? Hazardous Waste Decisions," AER 9/99
Gayer, “Neighborhood Demographics & Hazardous Waste Risk,” JRE Mar 00
Lueck & Michael “Preemptive Habitat Destruction under the Endangered Species Act” JLE 4/03
(3) Politics of Regulation
Leone and Jackson, "The Political Economy of Federal Regulatory Activity: Water Pollution," in Fromm, editor, Studies in Public Regulation.
Pashigian, "Environmental Protection: Whose Self Interests are Being Protected?" Econ. Inquiry, 10/85.
Cropper et al., "Determinants of EPA Pesticide Regulation" JPE, 2/92.
Hamilton, "Politics and Social Costs: Estimating the Impact of Collective Action on Hazardous Waste Facilities" RJ Sp. 93.
Mixon, "Public Choice & EPA: Evidence on Carbon Emissions Violations" PC 4/95.
Coates, "Electoral Support & The Capture of Legislators: North Carolina's Vote on Radioactive Waste Disposal," RJ Autumn 95.
Earnhart, “Enforcement of Environmental Protection Laws Under Communism & Democracy,” JLE 10/97.
Ando, “Do Interest Groups Compete: Application to Endangered Species” PC 1/03
(Weeks V. Consumer Protection: Safety and Fraud 16
9 & 10) A. Quality Information in Unregulated Markets
Nelson, "Advertising as Information," JPE, July-Aug. 74.
Klein and Leffler, "The Role of Market Forces in Assuring Contractual Performance", JPE, Aug. 81.
(P#32) Akerlof, "The Market for Lemons," QJE, Aug. 70.
(P#31) Darby and Karni, "Free Competition and the Optimal Amount of Fraud," JLE, Apr. 73.
Grossman, "The Informational Role of Warranties and Private Disclosure about Product Quality", JLE, Dec. 81.
Leland, "Quacks, Lemons and Licensing," JPE, Dec. 79.
Phillips & Zeckhauser, “Communicating the Health Effects of Consumer Products: Moderate Alcohol Consumption,” MDE, 10/96.
Hersch “Smoking, Seat Belts and Other Risky Decisions: Differences by Race and Gender,” MDE, 10/96.
B. Regulation in Specific Industries: Causes, Effects and Politics
1. Finance and Securities
(P#33) Stigler, "Public Regulation of the Securities Markets," J. of Business, Apr. 64. (See also articles by Friend and Herman, Robbins and Werner, and reply by Stigler in J. of Bus., Oct. 64.)
(P#34) Jarrell, "The Economic Effects of Federal Regulation of Market for New Security Issues", JLE, Dec. 81.
Simon, "The Effect of the 1933 Securities Act," AER 6/89.
Schwert, "Public Regulation of National Securities Exchanges…” BJ Spr 77
Jarrell, "Change at the Exchange: The Causes and Effects of Deregulation," JLE, Oct. '84.
Shaffer, "Competitive Impact of Disclosure Requirements in Credit Cards," JRE 3/99
Ippolito, R., "The Regulatory Effect of ERISA," JLE, 4/88.
______"Consumer Reaction to Measures of Poor Quality: Evidence from the 17
Mutual Fund Industry," JLE, 4/92.
Smith & Whaley, "Assessing the Costs of Regulation: Dual Trading", JLE 4/94.
Crawford et. al., "Bank CEO Pay - Performance Relations & The Effects of Deregulation," JB 4/95.
Economides, et.al., “Political Economy of Branching Restrictions,” JLE, 10/96.
Jayaratne & Strahan, “The Finance - Growth Nexus: Bank Branch Deregulation,” QJE, 8/96.
Kroszner and Stratmann, "Interest Group Competition in Congress: Financial Services PACs," AER 12/98
Kroszner and Strahan "What Drives Deregulation? Economics and Politics of the Relaxation of Bank Branching Restrictions," QJE Nov 99
Stratmann “Can Special Interests Buy Congressional Votes? Evidence from Financial Services” JLE 10/02
2 Licensed Professions
Kessel, "Price Discrimination in Medicine", JLE, Oct. 58.
Leffler, "Physician Licensure," JLE, Apr. 78.
Fournier & McInnes, “Medical Board Regulation of Physician Licensure” JRE 9/97.
Gaston and Caroll, "Occupational Restrictions and Quality of Service Received," Southern Economic Journal, Apr., l981.
Colbert and Murray, "State Accountancy Regulation," JRE 11/99
Svorny and Toma, "Entry Barriers and Medical Board Funding," PC 10/98
3 Advertising
Peltzman, "The Effect of FTC Advertising Regulation", JLE, Dec. 81.
Benham, "The Effect of Advertising on the Price of Eyeglasses," JLE, Oct. 72.
Bond, "A Direct Test of the Lemons Model: Used Pickup Trucks," AER, Sept. '82. 18
Rizzo and Zeckhauser, "Advertising and Entry: The Case of Physician Services," JPE, June '90.
Ippolito, P., "Information Advertising and Health" RJ, Autumn. '90.
Ippolito & Mathios, “Information and Advertising: A Study of Fat and Cholesterol Consumption,” Bureau of Economics, Federal Trade Commission.
Milyo & Waldfogel, “The Effect of Price Advertising on Prices: Evidence from 44 Liquormart, AER Dec 99 19
4 Health Care and Pharmaceuticals
Peltzman, "An Evaluation of Consumer Protection Legislation: The 1962 Drug Amendments," JPE, Sept. - Oct. 73.
Peltzman, "The Health Effects of Mandatory Prescriptions," JLE, 10/87.
Zweifel & Crivelli, “Price Regulation of Drugs: Lessons from Germany,” JRE, 11/96.
Bradford & Craycraft, “Prospective Payments & Hospital Efficiency,” RIO 12/96.
Baker and Brown, "Managed Care…and Mammography," RJ, Summer 99 Dranove et al “Effects of ‘Report Cards’ on Health” JPE, 6/03 5. Product and Workplace Safety
(a) Automobiles
Peltzman, "The Effects of Automobile Safety Regulation," JPE, Aug. 75.
Arnould and Grabowski, "Auto Safety Regulation," BJ, Sp. 81.
Peterson, et. al, “Are Drivers of Air Bag Equipped Cars More Aggressive?” JLE 10/95.
Mannering & Winston, “Auto Air Bags in the 1990s: Market Failure or Efficiency” JLE, 10/95.
Sass & Zimmerman, “Motorcycle Helmet Laws & Motorcycle Fatalities,” JRE Nov 00
Sutter “Political Economy of Auto Safety Inspections” PC 12/02
(b) Airlines
Rose, "Profitability and Product Quality: Airline Safety," JPE, 8/90.
Rose "Fear of Flying?" JEP Spring '92.
(c) Cigarettes
Viscusi, Fatal Tradeoffs.
______, "Do Smokers Underestimate Risks?" JPE, 12/90.
______, Smoking. 20
Boyes & Marlow, “The Public Demand for Smoking Bans,” PC, 7/96.
Rucker et. al., "Restricting the Market for Quota An Analysis of Tobacco..." JPE 2/95.
Viscusi, “Safety Behavior and Consumer Responses to Cigarette Lighter Safety Mechanisms,” MDE, 10/96.
Lamdin, "Event Studies of Regulation:..The Cigarette Advertising Ban," JRE 9/99
Evans et al, "Do Workplace Smoking Bans Reduce Smoking?" AER 9/99
Gruber, “Tobacco at the Crossroads: Past and Future of Smoking Regulation, JEP Spr 01
(d) Food and Beverage
Ippolito and Masson, "Social Cost of Milk Regulation," JLE, Apr. 78.
Gardner, "Causes of U.S. Farm Commodity Programs," JPE 4/87.
(e) Other Consumer Goods
Rodgers, “Bicyclist Risks and Helmet Usage,” MDE, 10/96.
Viscusi, "Consumer Behavior and the Safety Effects of Regulation," JLE, Oct. 85.
Viscusi and Hersch, "The Market Response to Product Safety Litigation," JRE, 9/90.
Broder and Morrall, "Incentives for Firms to Provide Safety: Capital Market Reactions," JRE, 12/91.
Jarrell & Peltzman, "The Impact of Product Recalls on the Wealth of Sellers," JPE, June 85.
Viscusi, "The Lulling Effect of Safety Regulation," AER May '84.
(f) Workplace
Viscusi, "The Impact of OSHA Regulation, 1973-83" RJ Winter 1986.
Bartel and Thomas, "Predation through Regulation: The Wage and Profit Effects of OSHA and EPA," JLE, 10/87.
6. Insurance 21
Born, “Insurer Profitability in Different Regulatory and Legal Environments,” JRE 7/01
Harrington & Danzon, “Rate Regulation, Safety Incentives in Workers Compensation
Insurance,” JB Oct 00
7. Labor Markets
Davila & Bohara "Equal Employment Opportunity Across States: The EEOC, 1979-89" PC 9/94.
Holmes, “The Effect of State Policies on the Location of Manufacturing,” JPE, 8/98.
Neumark and Stock, "Age Discrimination Laws and Labor Market Efficiency," JPE 10/99
Sobel, "…The Political Economy of the Minimum Wage," JPE 8/99
Dickens et al "Effect of Minimum Wages in Britain," JOLE 1/99
Baker et al "Minimum Wage Effect …in Canada," JOLE 4/99
Acemoglu & Angrist, “Consequences of Employment Protection: the Americans with Disabilities Act,” JPE Oct 01
VI. International Trade
Irwin, “The Political Economy of Free Trade: the British Election of 1905,” JLE, 4/94.
Thorbecke, “Explaining House Voting on NAFTA” PC 9/97.
Blonigan and Figlio “Voting for Protection” AER 9/98.
van Bastelaer “Political Economy of Food Pricing,” PC 7/98.
Kang and Greene, " A Political Economic Analysis of Congressional Voting on NAFTA," PC 3/99
Berry et al, "Voluntary Export Restraints on Autos," AER 6/99