What would a typical economist who supports applying a (strict) benefit-cost rule to new regulation, think about a regul...
What would a typical economist who supports applying a (strict) benefit-cost rule to new regulation, think about a regulatory budget rule? Why might an economist who is sympathetic to the logic behind the benefit-cost rule, support a regulatory budget instead?
Homework Answers
An economist who supports benefit-cost rule to new regulation desire more benefits in comparison to cost. The positive aspect of regulation is always taken into account by such economists. Whereas, a regulatory budget rule will have a decided level of benefits. It is carried out to achieve planned goals. The benefits are limited in regulation budget rule as the budget is allocated in advance only.
An economist might support a regulatory budget rule because
- It gives an estimate of expected benefits and costs.
- The goals are set well in advance.
- It estimates attainable benefits.
- The budget allocation is planned.
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What would a typical economist who supports applying a (strict) benefit-cost rule to new regulation, think about a regul...
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