文档介绍：Presented by: Emiliano Heissel
June 12th, 2007
BUSINESS AND POLICY
MAKING IN THE STATES
Papers developed:
Bruce A. Williams, „Economic Regulation and Environmental Protection“, in “ Politics in the American States ”, 7th ed. Gray, Hanson
and Jacob, eds. (Washington, .: CQ Press, 1999).
William Bole, „Do Ballot Initiatives Favor Democracy Or Big Business?“ American News Service, October 12, 2000.
Government Regulation
Why should a government intervene in the
market?
How government’s regulations should be
carried?
What specific policy will be pursued?
Which is the responsible level of
government? (federal vs. statal). Ex.: the
federal government has the right to regulate
merce (. Constitution).
Government Regulation
The government limits the behavior of different
groups inside the society (consumers, producers,
individuals, firms, industries).
It imposes costs and benefits on different groups of
individuals.
Good regulation = benefits (overriding public
interests) exceed their costs.
Problems: - benefits are difficult to calculate;
- people try to influence government’s
decisions in order to raise their benefits or
to lower their costs
Classic view of market economy
Adam Smith, Wealth Of Nations, 1776:
spontaneous market exchange regulation
(individuals, being selfish and pursuing their