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The Design of Regulations Expressed as Ratios or Percentage Quotas

Ross McKitrick ()

Journal of Regulatory Economics, 2001, vol. 19, issue 3, 295-305

Abstract: Regulations (such as pollution standards) are frequently expressed as a uniform ratio between a target variable and a base variable. The efficient form of such regulations is firm-specific. When firms are very different in size, large firms typically should face a relatively more stringent constraint, but this ranking may easily reverse when firms are more similar. Efficiency costs of uniform ratio standards are calculated. Copyright 2001 by Kluwer Academic Publishers

Date: 2001
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