Optimal level of regulation and regulatory reform seem to be an undisputed objective. However, in the context of financial regulation there are differences and disagreements over the optimal level of disclosure of information and capital adequacy standards. In this paper, instead of offering a...

We provide a stylised model that shows that having a multi-party setup in a democratic system comprising of a centre and state governments may lead to an aggregative inefficiency. The inefficiency is contingent on the existence of a sufficiently large number of regional parties that promotes a...