Review of The State, Regulation and the Economy: An Historical Perspective

Scott J. Wallsten, Technology Policy Institute, Georgetown Center for Business and Public Policy, Stanford University, Economists Incorporated

Abstract

This book is a collection of papers presented at a workshop in 1999 on the evolution and effects of economic regulation in several industries. Countries around the world have been undergoing seemingly constant regulatory changes for the past decade. In the 1990s industrialized countries began a process of deregulation, which many believe has gone too far, leading to renewed pressure for increased regulation. Developing countries, meanwhile, are liberalizing sectors once dominated by the state and struggling to develop effective regulations and regulatory agencies amidst competing interests. This collection of papers provides important and refreshing context to today's issues, reminding us that the debate over effective regulation is not new and that today's regulations have historical roots. The path-dependent nature of regulatory changes mean that today's regulations and industry structures are shaped in part by conditions put in place many years ago, and rationales for these rules are often ad-hoc and bear little relation to the reasons given at the beginning of the path.