Journal article
Regulatory Fragmentation
The Journal of finance (New York), v 80(2), pp 1081-1126
Apr 2025
Featured in Collection : UN Sustainable Development Goals @ Drexel
Abstract
Regulatory fragmentation occurs when multiple federal agencies oversee a single issue. Using the full text of the Federal Register, the government's official daily publication, we provide the first systematic evidence on the extent and costs of regulatory fragmentation. Fragmentation increases the firm's costs while lowering its productivity, profitability, and growth. Moreover, it deters entry into an industry and increases the propensity of small firms to exit. These effects arise from redundancy and, more prominently, from inconsistencies between government agencies. Our results uncover a new source of regulatory burden, and we show that agency costs among regulators contribute to this burden.
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Details
- Title
- Regulatory Fragmentation
- Creators
- JOSEPH KalmenovitzMICHELLE Lowry (Corresponding Author)EKATERINA Volkova
- Publication Details
- The Journal of finance (New York), v 80(2), pp 1081-1126
- Publisher
- Wiley
- Number of pages
- 46
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Finance
- Web of Science ID
- WOS:001409198500001
- Scopus ID
- 2-s2.0-105001090735
- Other Identifier
- 991022026257104721
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- Collaboration types
- Domestic collaboration
- International collaboration
- Web of Science research areas
- Business, Finance
- Economics