Measuring Regulatory Complexity

Jean-Edouard Colliard and Co-Pierre Georg
Additional contact information
Co-Pierre Georg: EDHEC Business School

No 1358, HEC Research Papers Series from HEC Paris

Abstract: Despite a heated debate on the complexity of financial regulation, a comprehensive framework to study regulatory complexity is lacking. We propose one inspired by the analysis of algorithmic complexity in computer science. We use this framework to distinguish different dimensions of complexity, classify existing measures, develop new ones, compute them on two examples - Basel I and the Dodd-Frank Act - and validate them using novel experiments. Our framework offers a quantitative approach to the policy trade-off between regulatory complexity and precision. Our toolkit is freely available and allows researchers to measure the complexity of any normative text and test alternative measures.

Keywords: Financial Regulation; Capital Regulation; Regulatory Complexity; Basel Accords (search for similar items in EconPapers)
JEL-codes: G18 G28 G41 (search for similar items in EconPapers)
Pages: 89 pages
Date: 2020-01-24
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Citations: View citations in EconPapers (3)

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Related works:
Working Paper: Measuring Regulatory Complexity (2020)
Working Paper: Measuring Regulatory Complexity (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:ebg:heccah:1358

DOI: 10.2139/ssrn.3523824

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