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Efficiency vs. equity concerns in regulatory sandboxes

Author

Listed:
  • Claude Crampes

    (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Antonio Estache

    (ECARES - European Center for Advanced Research in Economics and Statistics - ULB - Université libre de Bruxelles)

Abstract

The paper makes the case for a more systematic ex-ante assessment of the distribution of gains and losses from efficiency enhancing innovations that regulatory sandboxes are expected to test. It shows how a prior formal modelling of tests can inform the regulators on the possible need to control better upfront in the design of the sandbox for some otherwise underestimated but predictable distributional effects. Failing to do so is likely to lead to underestimate efficiency-equity trade-offs and other distributional issues, across stakeholders or within groups of stakeholders. Simple Industrial Organization models will often suffice to identify the potential issues at an early stage and allow better sandboxes designs and hence more reliable policy relevant results.

Suggested Citation

  • Claude Crampes & Antonio Estache, 2023. "Efficiency vs. equity concerns in regulatory sandboxes," Working Papers hal-04970644, HAL.
    • Handle: RePEc:hal:wpaper:hal-04970644
    Note: View the original document on HAL open archive server: https://hal.science/hal-04970644v1
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    File URL: https://hal.science/hal-04970644v1/document
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