Testing which proposed regulations need competition-proofing

Sean Lyons

Economic Papers from Trinity College Dublin, Economics Department

Abstract: When assessing the likely net impact of regulation, many jurisdictions test for specific effects on areas of concern, such as small businesses or the environment, as well as for more generalised costs and benefits. This paper considers how best to design a negative-clearance test for the competition effects of regulations. We start by examining the well-documented UK competition filter , which proves to have serious shortcomings. Important classes of potentially damaging measures will not trigger the UK filter, and we illustrate this by applying the filter to four controversial measures that are currently, or were recently, on the statute books in Ireland. Structural and other features of the UK filter that lead to these outcomes are identified. We then outline an alternative test structure that should reduce such false negatives while remaining practical to apply.

JEL-codes: K20 K29 L51 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2005-10
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:tcd:tcduee:tep20020

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