Costbenefit analysis helps in evaluating regulatory impact from "summary" of The Economics of Regulation: Principles and Institutions: Economic principles by Alfred Edward Kahn
Cost-benefit analysis is a crucial tool in the evaluation of regulatory impact, as it allows policymakers to weigh the costs and benefits of implementing regulations. By conducting a cost-benefit analysis, policymakers can determine whether the benefits of a regulation outweigh the costs, or vice versa. This analysis provides a systematic way to assess the potential impact of regulations on various stakeholders and society as a whole. When evaluating regulatory impact, policymakers must consider both the direct and indirect costs and benefits associated with a regulation. Direct costs include the expenses incurred by firms to comply with the regulation, while indirect costs may include changes in market behavior or consumer behavior as a result of the regulation. On the other hand, direct benefits may include improvements in public health or safety, while indirect benefits could include increased competition or inn...
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