The outreach of macroprudential policies is likely limited in practice by imperfect regulation enforcement, whether due … to shadow banking, regulatory arbitrage, or other regulation circumvention schemes. We study how such concerns affect the …

valued? We provide a general theory of optimal technology regulation in a second best world, with rich heterogeneity across …

Does regulation affect the pace and nature of innovation and if so, by how much? We build a tractable and quantifiable ….4% lower due to the regulation, a 2.2% consumption equivalent welfare loss. Four-fifths of this loss is due to lower innovation … changes in the direction of R&D, and find that regulation's negative effects only matter for incremental innovation (as …

Regulation of economic activity is ubiquitous around the world, yet standard theories predict it should be rather … uncommon. I argue that the ubiquity of regulation is explained not so much by the failure of markets, or by asymmetric … accounts for the ubiquity of regulation, for its growth over time, as well as for the fact that contracts themselves are …