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.

More Research From These Scholars

BFI Working Paper Nov 1, 2011

Recessions and the Costs of Job Loss

Steven J. Davis, Till von Wachter
Topics:  Monetary Policy, Employment & Wages, Financial Markets, Industrial Organization
BFI Working Paper Jun 10, 2019

Surveying Business Uncertainty

David E. Altig, Jose Maria Barrero, Nicholas Bloom, Steven J. Davis, Brent Meyer, Nicholas Parker
BFI Working Paper Oct 1, 2016

An Index of Global Economic Policy Uncertainty

Steven J. Davis
Topics:  Financial Markets, Monetary Policy