Efficiency vs. distributional concerns in regulatory sandboxes

Claude Crampes and Antonio Estache
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Antonio Estache: ULB - Université libre de Bruxelles

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Abstract: The paper makes the case for a systematic ex-ante assessment of the distributional impact of efficiency enhancing innovations regulatory sandboxes are expected to test. It shows how their prior formal modeling can inform on the possible need to control in the sandbox design for otherwise underestimated but predictable distributional effects. Failing to do so is likely to lead to underestimate efficiency-equity trade-offs and other distributional issues. This may influence the political sustainability of otherwise potentially welfare enhancing innovations. Simple industrial organization models will often suffice to identify the potential issues at the design stage

Keywords: Regulatory sandboxes; Innovation; Governance; Anti-trust; Regulation; Efficiency; Equity; Quality standards (search for similar items in EconPapers)
Date: 2025
New Economics Papers: this item is included in nep-mic and nep-reg
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Published in Journal of Economic Policy Reform, inPress, ⟨10.1080/17487870.2025.2463660⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04953563

DOI: 10.1080/17487870.2025.2463660

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