How do Federal Regulations affect Consumer Prices? An Analysis of the Regressive Effects of Regulation
| Autor: | Dustin Chambers, Alan Krause, Courtney A. Collins |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2019 |
| Předmět: |
Consumer expenditure
Economics and Econometrics Sociology and Political Science Public economics 05 social sciences Affect (psychology) 0506 political science Goods and services 0502 economics and business 050602 political science & public administration Economics Economic analysis Consumer price index Consumer Expenditure Survey 050207 economics health care economics and organizations Public finance |
| ISSN: | 0048-5829 |
| Popis: | This study is the first to measure the impact of federal regulations on consumer prices. By combining consumer expenditure and pricing data from the Bureau of Labor Statistics, industry supply-chain data from the Bureau of Economic Analysis, and industry-specific regulation information from the Mercatus Center’s RegData database, we determine that regulations promote higher consumer prices, and that these price increases have a disproportionately negative effect on low-income households. Specifically, we find that the poorest households spend larger proportions of their incomes on heavily regulated goods and services prone to sharp price increases. While the literature explores other specific costs of regulation, noting that higher consumer prices are a probable consequence of heavy regulation, this study is the first to provide a thorough empirical analysis of that relationship across industries. Irrespective of the reasons for imposing new regulations, these results demonstrate that in the aggregate, the negative consequences are significant, especially for the most vulnerable households. |
| Databáze: | OpenAIRE |
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