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Taxation by Regulation

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Author Info
Richard A. Posner

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Abstract

Students of the regulated industries often assume that regulation is designed either to approximate the results of competition or to protect the regulated firms from competition. But neither view explains adequately a number of important phenomena of regulation and regulated industries. Foremost among them is the prevalence of "internal subsidies," whereby unremunerative services are provided, sometimes indefinitely, out of the profits from other services. To understand this phenomena, we must assign another important purpose to regulation: we can call it "taxation by regulation." The purpose of this paper is to explore the dimension of the regulatory process, to demonstrate that it explains some otherwise perplexing features of the process and the industries subject to it, and to compare it with other methods of public finance.

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Publisher Info
Article provided by The RAND Corporation in its journal Bell Journal of Economics.

Volume (Year): 2 (1971)
Issue (Month): 1 (Spring)
Pages: 22-50
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Handle: RePEc:rje:bellje:v:2:y:1971:i:spring:p:22-50

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  1. Ann P. Bartel & Lacy Glenn Thomas, 1985. "OSHA Enforcement, Industrial Compliance and Workplace Injuries," NBER Working Papers 0953, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Francis Su, . "Rental Harmony: Sperner's Lemma in Fair Division," Claremont Colleges Working Papers 1999-10, Claremont Colleges. [Downloadable!]
  3. Spyros Pagratis, 2007. "Stock Liquidity Requirements and the Insurance Aspect of the Lender of Last Resort," International Journal of Central Banking, International Journal of Central Banking, vol. 3(3), pages 119-146, September. [Downloadable!]
  4. Lawrence J. White, . "Technological Change, Financial Innovation, and Financial Regulation: The Challenges for Public Policy," Center for Financial Institutions Working Papers 97-33, Wharton School Center for Financial Institutions, University of Pennsylvania. [Downloadable!]
  5. Philip Burns & Ian Crawford & Andrew Dilnot, 1995. "Regulation and redistribution in utilities," Fiscal Studies, Institute for Fiscal Studies, vol. 16(4), pages 1-22, January. [Downloadable!]
  6. T. N. Srinivasan, 2002. "Privatisation, Regulation, and Competition in South Asia," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 41(4), pages 389-422. [Downloadable!]
  7. Bernhard Wieland, 2006. "Special Interest Groups and 4th Best Transport Pricing," Working Papers 2006-13, Center for Network Industries and Infrastructure (CNI). [Downloadable!]
  8. Francis Buckley & Eric Rasmusen, 1999. "The Uneasy Case for the Flat Tax," Public Economics 9907003, EconWPA. [Downloadable!]
  9. James W. Hughes & Michael J. Moore & Edward A. Snyder, 2002. ""Napsterizing" Pharmaceuticals: Access, Innovation, and Consumer Welfare," NBER Working Papers 9229, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  10. Demirguc-Kunt, Asli, 1992. "Creditor country regulations and commercial bank lending to developing countries," Policy Research Working Paper Series 917, The World Bank. [Downloadable!]
  11. Flavio M. Menezes, 2008. "Consistent Regulation of Infrastructure Businesses: Some Economic Issues," Discussion Papers Series 372, School of Economics, University of Queensland, Australia. [Downloadable!]
  12. Raymond L. Gifford, 2003. "Regulatory Impressionism: What Regulators Can and Cannot Do," Review of Network Economics, Concept Economics, vol. 2(4), pages 466-479, December. [Downloadable!]
  13. Clarence G. Woudsma & Pavlos S. Kanaroglou, 1996. "The Impacts of Trucking Deregulation in Ontario: A Market-Specific Analysis," Canadian Public Policy, University of Toronto Press, vol. 22(4), pages 356-377, December. [Downloadable!] (restricted)
  14. Walter Hettich + Stanley L. Winer, 2004. "Regulation and Taxation: Analyzing Policy Interdependence," Carleton Economic Papers 04-03, Carleton University, Department of Economics. [Downloadable!]
  15. Leon Courville & Marcel G. Dagenais, 1977. "On New Approaches to the Regulation of Bell Canada," Canadian Public Policy, University of Toronto Press, vol. 3(1), pages 76-89, Winter. [Downloadable!] (restricted)
  16. Amy Finkelstein & James Poterba & Casey Rothschild, 2006. "Redistribution by Insurance Market Regulation: Analyzing a Ban on Gender-Based Retirement Annuities," NBER Working Papers 12205, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  17. Edward J. Kane, 1981. "Accelerating Inflation, Technological Innovation, and the Decreasing Effectiveness of Banking Regulation," NBER Working Papers 0638, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  18. Lawrence J. White, 2008. "The Role of Competition Policy in the Promotion of Economic Growth," Working Papers 08-19, New York University, Leonard N. Stern School of Business, Department of Economics. [Downloadable!]
  19. Thomas Hazlett & George Ford, 2001. "The Fallacy of Regulatory Symmetry: An Economic Analysis of the 'Level Playing Field' in Cable TV Franchising Statutes," Business and Politics, Berkeley Electronic Press, vol. 3(1), pages 21-46. [Downloadable!] (restricted)
  20. Noll, Roger G., . "The Consequences of Public Utility Regulation of Hospitals," Working Papers 63, California Institute of Technology, Division of the Humanities and Social Sciences. [Downloadable!]
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