U.S. Industry Adjustment to Economic Deregulation
AbstractThis paper develops a framework to analyze the long-run adjustment of U.S. industries to economic deregulation, highlighting the role of intensified competition, innovations in operations, marketing, and technology, and adjustments to external shocks. The author applies this framework to industries that have recently undergone substantial deregulation--airlines, motor carriers, railroads, banks, and natural gas--and concludes that these industries have become far more efficient because of deregulation and provided large benefits to consumers. He concludes that the same adjustment process and positive outcome for consumers will result from the forthcoming deregulation of communications and electricity.
CitationWinston, Clifford. 1998. "U.S. Industry Adjustment to Economic Deregulation." Journal of Economic Perspectives, 12 (3): 89-110. DOI: 10.1257/jep.12.3.89
- L51 Economics of Regulation
- G21 Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- L11 Production, Pricing, and Market Structure; Size Distribution of Firms
- L90 Industry Studies: Transportation and Utilities: General
- O32 Management of Technological Innovation and R&D