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American Economic Review: Vol. 102 No. 3 (May 2012)

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Government Policy for a Partially Deregulated Industry: Deregulate It Fully

Article Citation

Winston, Clifford. 2012. "Government Policy for a Partially Deregulated Industry: Deregulate It Fully." American Economic Review, 102(3): 391-95.

DOI: 10.1257/aer.102.3.391

Abstract

Alfred Kahn was a major force behind regulatory reform that initially benefited air travelers and subsequently consumers in other industries by placing greater reliance on markets than on regulators to allocate resources. Kahn also believed that effective governance was important for deregulation's success. In this paper, I argue that such governance has not occurred in practice and that problems that persist in partially deregulated industries are more likely to be solved by full deregulation and, if necessary, privatization than by government intervention.

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Authors

Winston, Clifford (Brookings Institution)

JEL Classifications

L51: Economics of Regulation


American Economic Review


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