Regulatory Complexity and Policy Uncertainty: Headwinds of Our Own Making

46 Pages Posted: 28 Jan 2016 Last revised: 3 May 2017

See all articles by Steven J. Davis

Steven J. Davis

University of Chicago; National Bureau of Economic Research (NBER)

Date Written: April 29, 2017

Abstract

The U.S. regulatory system has grown increasingly expansive, intrusive and complex in recent decades, its tax system has become ridiculously complicated, and its economic policies have become less predictable. I present several pieces of evidence related to these developments and discuss some of their costs. I then sketch some ideas to arrest or reverse these developments. In this regard, I stress the importance of simplicity in regulatory design, the advantages of policy designs that foster predictable regulatory responses, and the need for new institutions to restrain ineffective, excessively burdensome and capricious regulations.

Keywords: policy uncertainty, regulation, taxes

Suggested Citation

Davis, Steven J., Regulatory Complexity and Policy Uncertainty: Headwinds of Our Own Making (April 29, 2017). Becker Friedman Institute for Research in Economics Working Paper No. 2723980. Available at SSRN: https://ssrn.com/abstract=2723980 or http://dx.doi.org/10.2139/ssrn.2723980

Steven J. Davis (Contact Author)

University of Chicago ( email )

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Chicago, IL 60637
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773-702-0458 (Fax)

National Bureau of Economic Research (NBER)

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