Essay On Regulation

“For example, the federal government regulates the quality of food and water, the safety of workplaces and airspaces, and the integrity of the banking and finance system.” (Bianco, Canon 2011, p 582) Regulations find out if the product is a market failure. There are two types of regulations, which are economic and social. “Economic regulations sets prices or conditions on entry of firms into an industry, where as social regulation address issues of quality and safety.” (Bianco, Canon 2011, p 582) Economic regulations are concerned with the price regulation of monopolies.

Regulating a variety of aspects of business and society is an old and often controversial aspect of government, particularly at the national level. Much of what the national government does, or fails to do, has an impact on individual citizens, private corporations and other business enterprises, agricultural producers and marketers, foreign governments, labor unions, and state and local governments.

In this essay I will discuss a few terms and how their relationships apply between regulation and market structures, as well as how regulation policies affect the market.

The public interest theory of regulation, or economic theory of regulation states that industrial regulation is essential in maintaining a natural monopoly. Natural monopolies turning into a regular monopoly charging monopoly prices can be harmful to society. Something that everyone most generally uses or needs like public resources i.e. electricity and water. Almost every person in our society requires these resources. The initial cost for creating a firm that can provide these services is high. Some startup cost can include power stations as well as power lines, labor costs, the cost of producing the power, and many other costs. These naturally occurring costs can often bar entry or discourage entry into the industry. In the event that a firm does make it into the industry and starts producing these public resources such as

There are two types of regulations: economic and social. An Economic regulation is the prescription of price and output for a specific industry, as Social regulation is the prescription of health, safety, performance, and environmental standards that apply across several industries. Most economic regulations happened after the Great Depression, under the leadership of President Franklin D. Roosevelt, in which a natural monopoly, like utilities, railroads, and communication would match that of a competitive market, thus setting a market-price cap. Understanding that in some aspects the government cannot stop a monopoly without causing market harm in some cases, so they attempt to rectify it. The government gives companies fair rates of returns, which is a price that allows a monopoly firm to earn a normal profit, similar to one gained when a companies marginal cost matches their marginal revenue. This is especially important, because when the government calls for the deregulation of a company, it leaves behind stranded assets, properties that lose values after the intervention. Other ways government can aid in the deregulation of a business is through privatization and contracting out; the government can either enlist a private firm to do a service on their behalf, or even transferring the public enterprise to private

Numerous independent agencies can impose restrictions on prices, entry into markets, disclosures or contract terms. Yet agencies often conduct little or no economic analysis to identify the need for, or effects of, restrictions before they're adopted. So agencies can impose massive mandates

1. The elimination of potential regulatory gap or overlaps arising from member regulation and market regulation

First of all, every economic sector that was subject to economic regulation before 1975, has undergone significant changes in the nature and extent of regulation. These changes had profound effects on the structure of industries, price levels, costs and productivity. The industries in which changes occurred in economic regulations are the carriers, heavy transport, public transport, railways, telecommunications, production and transportation of natural gas, cable television, banking and financial services , electricity and property insurance and liability. These industries vary in structure, behavior, nature of regulation, and distribution of responsibilities between federal and state regulatory authorities. There are also wide variations in the major reasons, causes, and consequences of regulatory changes in these industries.

The current government regulations I researched pertain to the clinical guidelines and the civil rights of persons living with HIV/AIDS in Portland, Oregon. Many people living with HIV/AIDS, at some point during their illness, find themselves in need of housing assistance and support services. Stable housing promotes improved health, sobriety or decreased use of alcohol and illegal drugs, and, for some, a return to paid employment and productive social activities. As the number of people living with HIV/AIDS continues to grow in both urban and rural areas throughout the United States, stakeholders must find new ways to address their needs to promote the health and well-being of these individuals

In both developed and underdeveloped economies, there is a need to put regulations which ensure that profits are not abnormally earned at the expense of the innocent clients. It is therefore the mandate of the territorial authorities to put in place measures that introduce checks and balances in all trades. The respective companies or business must also follow the same suit lest they find themselves in the crossroads of law. However,

Madani D., Licetti M. (2010). Business regulation, reform and corruption. The World Bank, PREM notes, number 155.

The purpose of this paper is to show that the “regulatory capture” has played a role not easily measurable in causing the global financial crisis. To illustrate this, the first step will to describe the “regulatory capture” in its three possible qualifications; then, I will explain, providing some examples, how each of these categories played a possible role in posing the basis for the financial crisis. While illustrating the different forms of capture I will present some questions that leave space to different answers. Finally, I will conclude that the regulatory capture have surely played a role in generating the crisis, but it is not possible to evaluate the effective role it had in causing it.

Securities regulations began in 1933 as a reaction to securities market violations. Securities regulations are a balance of investor and issuer interests. Regulations have typically been enacted in reaction to a violation that affects many, including issuers, investors, and the public. These regulations are not only created in reaction to violations, but the legislature also attempts to take a bigger step in prevention of the same violation reoccurring, as well as preventing a violation that has yet to occur. In other words, securities regulations have always been on a mission to stay one step ahead of securities violations from both issuers and investors. Regulations tend to tighten the rules to ensure investors and issuers do not have

At the same time, the regulators should be as transparent as possible and fully accountable. The accountability and transparency of the regulator will increase the credibility of the regulator and in-turn benefit the regulated entity. Types of Financial Regulation Financial regulation in a country can be done either by a single body called a single regulator or multiple bodies co-existing and working together or in a hierarchy of entities known as multiple regulators. A regulator whether single or multiple does not determine the economic standing of a country or its financial strength. Many developed countries of the world follow either the system of single regulation or multiple regulations. Often in times of economic crisis or financial boom in the country’s economy the government of the nation will review its regulatory system and choose to expand or close down some of its regulatory bodies.

The neo-economic liberalization undertaken in India in the 1990s, lead to a new and improved market structure. It redefined the roles of the various agents in the economy and founded a system based on the market forces. It was in the backdrop of these changes that there was a marked shift in the role of the government from an agent that ran businesses to an agent that primarily undertook regulation and supervision to ensure optimization in the running of the businesses in India. This shift in the role of the state ushered in an era of regulators . The regulators embodied the expertise, domain knowledge and the impartiality that the government influenced by the political party in power could not effectively provide.