Journal of Regulatory Economics

, Volume 41, Issue 1, pp 59–79

The World of Regulatory Influence

Original Article

DOI: 10.1007/s11149-011-9178-8

Cite this article as:
Macher, J.T. & Mayo, J.W. J Regul Econ (2012) 41: 59. doi:10.1007/s11149-011-9178-8

Abstract

Models of firms’ influence over the regulatory agencies that oversee them have traditionally been constrained by several factors, including a lack of direct measures of “influence,” an inability to account for variations in the institutional environment within which firms operate, and a nearly singular focus on industry-level measures of interest group strengths. In this paper, we employ a global database and novel measures to provide a fresh look at the determinants of firms’ influence over regulatory agencies. We find that in addition to traditional industry-level determinants, important country-level institutional and firm-level determinants affect firms’ regulatory agency influence. We also find that regulatory process variations affect firms’ influence over regulators. With these empirical estimates in hand, we generate a Regulatory Influence Index that ranks influence levels of typical firms that operate in each sample country in the dataset, and then discuss the substantial country-level variation in regulatory agency influence that obtains.

Keywords

Regulation Influence Ranking 

JEL Classification

L51 P48 

Copyright information

© Springer Science+Business Media, LLC 2012

Authors and Affiliations

  1. 1.McDonough School of BusinessGeorgetown UniversityWashingtonUSA