Jump to ContentJump to Main Navigation
Openness to Creative DestructionSustaining Innovative Dynamism$
Users without a subscription are not able to see the full content.

Arthur M., Jr. Diamond

Print publication date: 2019

Print ISBN-13: 9780190263669

Published to Oxford Scholarship Online: June 2019

DOI: 10.1093/oso/9780190263669.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (www.oxfordscholarship.com). (c) Copyright Oxford University Press, 2019. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 12 November 2019

Unbinding Regulations

Unbinding Regulations

Chapter:
(p.167) 12 Unbinding Regulations
Source:
Openness to Creative Destruction
Author(s):

Arthur M. Diamond Jr.

Publisher:
Oxford University Press
DOI:10.1093/oso/9780190263669.003.0012

The steady growth in imposed regulations, often defended on the basis of the precautionary principle (which forbids innovations until there is proof that they will cause no harm), increases the risks and costs of innovation for the entrepreneur. Many important innovations of the last century would not have occurred if the precautionary principle had been in operation. Organic regulation of the marketplace (including tort actions and private ratings firms) can counter injuries due to irresponsible firm behavior, without stifling innovation. OSHA regulations did not reduce workplace deaths; financial regulations did not stop the Crisis of 2008, and may have made it worse. Occupational licensing regulations protect incumbents, and reduce opportunity for the least well-off. By slowing new life-saving drugs, FDA regulations cause more deaths than they prevent. The Vodnoy paradox suggests that we favor regulations in areas where we are ignorant and oppose them in areas where we are knowledgeable.

Keywords:   increased regulations, imposed regulations, regulations reduce innovation, regulations protect incumbents, precautionary principle, organic regulation, OSHA workplace deaths, occupational licensing effects, FDA reduces innovation, Vodnoy paradox

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .