Regulation - Deregulation, Regulatory Reform and Liberalization

Deregulation, Regulatory Reform and Liberalization

According to the Competitive Enterprise Institute, the cost to the economy of government regulation in the United States is approximately $1.75 trillion per year, which exceeds all corporate pretax profits put together. There have been ongoing programs to review regulatory initiatives with a view to minimizing, simplifying, and making more cost effective regulations. Such efforts, given impetus by the Regulatory Flexibility Act of 1980 in the United States, are embodied in the United States Office of Management and Budget's Office of Information and Regulatory Affairs, and the United Kingdom's Better Regulation Commission. Cost-benefit analysis is frequently used in such reviews. In addition, there have been regulatory innovations, usually suggested by economists, such as emissions trading. Academic research on wedding economic theory with regulatory activity continues.