Deregulation

Deregulation means in planning policy, a portion of the economic policy, the reduction or simplification of market regulation in the form of state standards and regulations.

• 2.1 legal deregulation
• 2.2 regulatory

Economic Importance

Intention of deregulation, liberalization of markets, with the aim

• To promote innovation through competition
• To encourage investment and thus create new jobs
• To achieve greater efficiency in the company
• The State to allow a discharge of public budgets.

These goals can all be pursued jointly or individually, separately. Starting points of deregulation may be the regulation of the strength ( reducing the number of special provisions) and the periphery ( reducing the number of areas). You can rely on prices, quantities, standards, rules - such as environmental regulations - refer.

Is justified deregulation with the limits of controllability of complex processes. Does the government regulation too far, then arise from negative micro-and macroeconomic consequences that prevent economic activities, for example, or steer you in the wrong direction. From a competition policy point of view should be achieved by means of deregulation elimination of market distortions. However, many economists, market failure of the need for government intervention, while he should retire in cases in which there is no market failure, from market transactions, such as private goods.

Various studies measure of deregulation in a job -creating effect. One of BAK Basel Economics, the Institute for Applied Economic Research ( IAW), Tübingen and the forecasters AG Basel completed analysis of data from 20 OECD countries for the period 1980-1998 showed that deregulation of product markets in the medium term clearly positive growth and employment effects after runs. However, deregulation of the labor market does not affect the development of unemployment according to the study. The Institute of the German Economy in Cologne (IW ) in 2006 came to the conclusion that the proportion of long -term unemployment in total unemployment in countries with less regulation with almost 20 percent is much lower than in Germany with over 50 percent.

The deregulation alone does not always lead to (permanently) functioning markets. For example, the break-up of AT & T Group in 1984, which had become by the regulation of U.S. telecommunications market to monopoly, led to many individual companies that were competing with each other. Meanwhile, however, are only three of them left by mutual purchases from the original circle. To obtain functioning markets, so also government intervention by antitrust authorities be considered necessary. Privatization question goes not only with forms of deregulation, but also with re-regulation go hand in hand: this is true of the pricing policy in addition to competition law. So in connection with privatization in OECD countries, many regulatory bodies have been set up. Giandomenico Majone speaks of the fact that deregulation " a notoriously ambiguous term" is. From the perspective of the theory of regulatory capitalism is argued that the extent of our regulation by the efforts to privatization and globalization since the early 1980s have rather than decreased.

Deregulation in the financial markets is according to a study judged to be exacerbating the crisis following the financial crisis in 2007. Had a stabilizing effect on the other hand from a deregulated labor market.

Criticism

After approval by private companies for tasks that previously state-owned enterprises or municipal authorities within the meaning of the basic service completed (mobility, postal services, job placement, etc.) picked these private companies "cherry from the cake ," she took on the free market only the most lucrative businesses ( rail traffic on main lines, parcel service ). Less lucrative sectors (rail traffic on secondary roads, letter delivery in areas with low population density ) remained in its area of operations of the public sector. However, since the profitable lines of business across financed the low-profit sectors in the community, thereby helping give these unprofitable services remained after loss of the " cash cows " ( English for " economic draft horses " or " cash cow " ) the costly services in the portfolio of the public sector. Which it follows that resulting deficits the state or the municipalities need to cover in terms of primary care or these costly services are set (set of branch lines, setting the delivery of mail and necessary self- Collection of mail in mailboxes, closing down post offices and mailboxes or longer paths of the individual to the few remaining ).

An economic optimization of state enterprises or municipal companies can also take place without deregulation. One example is the coordination of railway lines and in parallel run railway bus station and bus lines in Austria. Contradicted by the fact that the personnel policy of the state-owned enterprises was often determined by influence of owner representatives and political Part One and the companies " bloated " were, since any resulting deficits were paid from the " public purse ".

Examples

Legal deregulation

• Privatizations in Germany by the Postal Act, the Telecommunications Act and the Energy Industry Act
• In the U.S., the Airline Deregulation Act

Regulation

• State monopolies
• Air traffic control in Germany
• Shop closing laws
• Book prices
• Chimney sweep had until December 2012 regional monopolies (reciprocal monopoly). In Germany they did not have the freedom to freely choose his chimney sweep. In 2007, there were 7,810 ordered chimney sweep.
• Light bulb ban