Document Type
Article
Publication Title
American Economic Association
Publication Date
9-1983
ISSN
0002-8282
Page Number
793
Keywords
environmental aspects, regulation, uncertainty, adverse productivity
Disciplines
Environmental Law | Law | Work, Economy and Organizations
Abstract
The existence of a negative relationship between the regulatory burden and capital investments, and consequently productivity,is not controversial. A conventional model of this type is developed in Section I. If, however, these regulations change over time and firms' investment decisions are irreversible, there will be additional distortions, as shown in Section II. In Section III, I show that uncertainty regarding these regulatory changes exacerbates the adverse productivity effects even for risk-neutral firms.
Recommended Citation
W. Kip Viscusi,
Frameworks for Analyzing the Effects of Risk and Environmental Regulations on Productivity, 73 American Economic Association. 793
(1983)
Available at: https://scholarship.law.vanderbilt.edu/faculty-publications/76