Saturday, December 21, 2024

Cost of bad regulation is 30%

 

From the Grumpy Economist:

Even 30% is a lot. That’s a decade of 3% extra growth. That’s the difference between the US and most of Europe. That’s orders of magnitude more than most conventional economists will allow as the cost of regulation. ...
This shows the correlation between the level of GDP per capita and the World Bank’s (then) ease of doing business measure. 100 is the best observed policy in each category, so is achievable. Not even the US is perfect. The regression line shows an eye-popping possibility for even the US to improve just by fixing the remaining impediments to business. I was pilloried, of course, for the suggestion.

1 comment:

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