Graziadio Working Paper Series
 

Document Type

Article

Publication Date

2022

Abstract

Nobel Prize Laureate Hayek warned the U.S. was susceptible to wrong-sized regulations leading to market failure. We seek to understand where we are relative to Hayek’s portention, the effects of regulations on business performance, and how to right-size regulations to establish a healthy business environment. Previous research contains different underlying evidence and methods because they are from diverse, bias, incomplete, or propagandized angles, making productive discourse difficult and increasing epistemological polarity. Thus, this paper is a call for research to quantify the costs and benefits of regulation on business, with specific requests for action on contemporary regulatory dilemmas. The spectrum of business regulation considerations and a historical perspective of regulatory decisions are examined. A set of models and frameworks based on the literature are developed to propose research questions. The U.S. is at a pivotal moment where it is critical to understand the impacts of regulations on business performance and develop appropriate actions. The aim and underling premises of the study, implications, and desire are based on the genuine concern that we may be reaching a state of overregulation that requires correction, but our stance is not political in nature. Rather, it seeks to provide an economic foundation to investigate whether indeed the U.S. has reached a state of overregulation and if so, how to achieve an optimal level of regulation.

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