Regulatory Principles and Institutions - Oxford HandbooksVernon, Discussion Papers. Grossman, Sanford J. Guasch, Schmitz, Patrick W,
Alfred E. Kahn
Alfred Edward Kahn October 17, — December 27, was an American professor, an expert in regulation and deregulation, and an important influence in the deregulation of the airline and energy industries. Kahn was born in Paterson, New Jersey , on Oct. His father, a Russian Jewish immigrant, worked in a silk mill. Before World War II, he also worked for policy research organizations and government agencies in Washington, including the Brookings Institution and the antitrust division of the U. Justice Department. He moved to Cornell University in , where he served as chairman emeritus of the Department of Economics a position he held for the rest of his life , as a member of the Board of Trustees of the University and as Dean of the College of Arts and Sciences. While serving under Carter, Kahn became known for his blunt and sometimes politically damaging comments.
Kahn presided over the deregulation of the airlines and his book, published earlier in that decade, presented the first comprehensive integration of the economic theory and institutional practice of economic regulation. In his lengthy new introduction to this edition Kahn surveys and analyzes the deregulation revolution that has not only swept the airlines but has transformed American public utilities and private industries generally over the past seventeen years. While attitudes toward regulation have changed several times in the intervening years and government regulation has waxed and waned, the question of whether to regulate more or to regulate less is a topic of constant debate, one that The Economics of Regulation addresses incisively. It clearly remains the standard work in the field, a starting point and reference tool for anyone working in regulation. Kahn points out that while dramatic changes have come about in the structurally competitive industries - the airlines, trucking, stock exchange brokerage services, railroads, buses, cable television, oil and natural gas - the consensus about the desirability and necessity for regulated monopoly in public utilities has likewise been dissolving, under the burdens of inflation, fuel crises, and the traumatic experience with nuclear plants. Kahn reviews and assesses the changes in both areas: he is particularly frank in his appraisal of the effect of deregulation on the airlines. His conclusion today mirrors that of his original, seminal work - that different industries need different mixes of institutional arrangements that cannot be decided on the basis of ideology.
The Economics of Regulation. Principles and Institutions. By Alfred E. Kahn. Hardcover $ S £ Paperback $ X £ Buying Options.
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Economics of Regulation
Atlantic Economic Journal. Although Kahn's theorizing may be criticized in various ways, there is no doubt that he succeeds in arriving at the correct conclusion. Significant social benefits were to be attained through increasing competition, i. As chairman of the Civil Aeronautics Board, Kahn courageously and effectively acted to bring about the benefits from deregulation that he predicted would be forthcoming, for which this nation, if not the world, should be grateful. In this book, Kahn argues persuasively for increasing thecompetitive component in regulated industries in order to achieve greater economic efficiency. The message of the book endures, as is befitting the book's stature as a classic. Unable to display preview.
Regulatory economics is the economics of regulation. It is the application of law by government or independent administrative agencies for various purposes, including remedying market failure , protecting the environment. Regulation is generally defined as legislation imposed by a government on individuals and private sector firms in order to regulate and modify economic behaviors. Most governments, therefore, have some form of control or regulation to manage these possible conflicts. The ideal goal of economic regulation is to ensure the delivery of a safe and appropriate service, while not discouraging the effective functioning and development of businesses. For example, in most countries, regulation controls the sale and consumption of alcohol and prescription drugs , as well as the food business, provision of personal or residential care, public transport, construction, film and TV, etc. Monopolies, especially those that are difficult to abolish natural monopoly , are often regulated.