“Regulierung und Wettbewerb (Regulation and Competition),” FuW, 2017

Finanz und Wirtschaft, December 13, 2017. PDF. Ökonomenstimme, December 15, 2017. HTML.

  • Regulation is about aligning private and social trade-offs.
  • When banks cause negative externalities, good regulatory interventions increase banks’ costs.
  • Externalities may differ across countries, so nothing suggests that regulation induced costs should be the same internationally.