We present a model of efficient regulation along the lines of Demsetz (1967). In this model, setting up and running regulatory institutions takes a fixed cost, and therefore jurisdictions with larger populations affected by a given regulation are more likely to have them. Consistent with the model, we find that higher population U.S. states have more pages of legislation and adopt particular laws earlier in their history. We also find that specific types of regulation, including the regulation of entry, the regulation of labor, and the military draft are more extensive in countries with larger populations. Overall, the data show that population is an empirically important determinant of regulation.
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10234.
Length: Date of creation: Jan 2004 Date of revision: Handle: RePEc:nbr:nberwo:10234
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Find related papers by JEL classification: H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government K10 - Law and Economics - - Basic Areas of Law - - - General (Constitutional Law)
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Simeon Djankov & Rafael La Porta & Florencio Lopez-de-Silane & Andrei Shleifer & Juan Botero, 2003.
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Rafael Porta & Florencio Lopez-De-Silanes & Andrei Shleifer, 2006.
"What Works in Securities Laws?,"
Journal of Finance,
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Djankov, Simeon & Glaeser, Edward & La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei, 2003.
"The new comparative economics,"
Journal of Comparative Economics,
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Simeon Djankov & Edward L. Glaeser & Rafael La Porta & Florencio Lopez-de-Silane & Andrei Shleifer, 2003.
"The New Comparative Economics,"
NBER Working Papers
9608, National Bureau of Economic Research, Inc.
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Simeon Djankov & Rafael La Porta & Florencio Lopez-De-Silanes & Andrei Shleifer, 2002.
"The Regulation Of Entry,"
The Quarterly Journal of Economics,
MIT Press, vol. 117(1), pages 1-37, February.
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Simeon Djankov & Rafael La Porta & Florencio LopezdeSilanes & Andrei Shleifer, 2000.
"The Regulation of Entry,"
NBER Working Papers
7892, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Djankov, Simeon & La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei, 2001.
"The Regulation of Entry,"
Working Paper Series
rwp01-015, Harvard University, John F. Kennedy School of Government.
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Casey Mulligan & Andrei Shleifer, 2004.
"Conscription as Regulation,"
NBER Working Papers
10558, National Bureau of Economic Research, Inc.
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Simeon Djankov & José Garcia Montalvo & Marta Reynal-Querol, 2005.
"The Curse of Aid,"
Economics Working Papers
870, Department of Economics and Business, Universitat Pompeu Fabra.
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Simeon Djankov & Jose Montalvo & Marta Reynal-Querol, 2008.
"The curse of aid,"
Journal of Economic Growth,
Springer, vol. 13(3), pages 169-194, September.
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