The Failure of Judges and the Rise of Regulators

The Failure of Judges and the Rise of Regulators

by Andrei Shleifer
     
 

ISBN-10: 0262016958

ISBN-13: 9780262016957

Pub. Date: 01/31/2012

Publisher: MIT Press

Government regulation is ubiquitous today in rich and middle-income countries—present in areas that range from workplace conditions to food processing to school curricula—although standard economic theories predict that it should be rather uncommon. In this book, Andrei Shleifer argues that the ubiquity of regulation can be explained not so much by the

Overview

Government regulation is ubiquitous today in rich and middle-income countries—present in areas that range from workplace conditions to food processing to school curricula—although standard economic theories predict that it should be rather uncommon. In this book, Andrei Shleifer argues that the ubiquity of regulation can be explained not so much by the failure of markets as by the failure of courts to solve contract and tort disputes cheaply, predictably, and impartially.

When courts are expensive, unpredictable, and biased, the public will seek alternatives to dispute resolution. The form this alternative has taken throughout the world is regulation. The Failure of Judges and the Rise of Regulators gathers Shleifer's influential writings on regulation and adds to them a substantial introductory essay in which Shleifer critiques the standard theories of economic regulation and proposes "the Enforcement Theory of Regulation," which sees regulation as the more efficient strategy for social control of business.

Subsequent chapters present the theoretical and empirical case against the efficiency of courts, make the historical and theoretical case for the comparative efficiency of regulation, and offer two empirical studies suggesting circumstances in which regulation might emerge as an efficient solution to social problems.

Shleifer does not offer an unconditional endorsement of regulation and its expansion but rather argues that it is better than its alternatives, particularly litigation.

Product Details

ISBN-13:
9780262016957
Publisher:
MIT Press
Publication date:
01/31/2012
Series:
Walras-Pareto Lectures
Pages:
352
Sales rank:
1,196,577
Product dimensions:
6.20(w) x 9.10(h) x 1.30(d)
Age Range:
18 Years

Table of Contents

Acknowledgments vii

1 The Enforcement Theory of Regulation 1

2 Judicial Fact Discretion Nicola Gennaioli 23

3 The Evolution of Common Law Nicola Gennaioli 53

4 The Evolution of a Legal Rule Anthony Niblett Richard A. Posner 77

5 Courts Simeon Djankov Rafael La Porta Florencio Lopez-de-Silanes 105

6 The Rise of the Regulatory State Edward L. Glaeser 143

7 Coase versus the Coasians Edward L. Glaeser Simon Johnson 177

8 Legal Origins Edward L. Glaeser 209

9 The Extent of the Market and the Supply of Regulation Casey B. Mulligan 241

10 The Regulation of Entry Simeon Djankov Rafael La Porta Florencio Lopez-de-Silanes 267

Notes 299

References 311

Index 327

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