Arbeitspapier
Legal change in the face of risk averse subjects: A generalization of the theory
This study investigates the optimal nature of law making under uncertainty. I focus on a case in which a harmful activity will be subjected to some regulatory measures (a standard, exposure to liability, or a corrective tax). The benefits and costs of precaution are ex-ante uncertain, and this places a risk burden on both injurers and victims. The optimal policy should, at the same time, strike a balance between benefits and costs of the measures, and attenuate the ex-ante risk. Whether measures should be made stronger or softer depends on the size and the sign of the shocks affecting the parties (positive or negative) and their disposition towards risk. With corrective taxes, it also depends on the elasticity of precautions with respect to the tax rate.
- Language
-
Englisch
- Bibliographic citation
-
Series: Quaderni - Working Paper DSE ; No. 1132
- Classification
-
Wirtschaft
- Subject
-
egal change
regulation of risk
externalities
cost-benefit analysis
emerging risks
- Event
-
Geistige Schöpfung
- (who)
-
Franzoni, Luigi Alberto
- Event
-
Veröffentlichung
- (who)
-
Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE)
- (where)
-
Bologna
- (when)
-
2019
- DOI
-
doi:10.6092/unibo/amsacta/6195
- Handle
- Last update
-
10.03.2025, 11:41 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Franzoni, Luigi Alberto
- Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE)
Time of origin
- 2019
Other Objects (12)
Comparison of the production behavior of regret-averse and purely risk-averse firms
A Generalization of the Phillips Curve
A generalization of the Nakayama functor
A generalization of the Shapley-Ichiishi result
Generalization of knowledge in the labor market
Subjects of the virgin
Subjects of the prints.
Generalization of the worst performance rule across the lifespan
A Generalization of Hall's Specification of the Consumption function
Prices vs quantities: The case of risk averse agents
A Generalization of the Directed Graph Layering Problem
Estimating the Generalization Performance of a SVM Efficiently
Comparison of the production behavior of regret-averse and purely risk-averse firms
A Generalization of the Phillips Curve
A generalization of the Nakayama functor
A generalization of the Shapley-Ichiishi result
Generalization of knowledge in the labor market
Subjects of the virgin
Subjects of the prints.
Generalization of the worst performance rule across the lifespan
A Generalization of Hall's Specification of the Consumption function
Prices vs quantities: The case of risk averse agents
A Generalization of the Directed Graph Layering Problem
Estimating the Generalization Performance of a SVM Efficiently
Comparison of the production behavior of regret-averse and purely risk-averse firms
A Generalization of the Phillips Curve
A generalization of the Nakayama functor
A generalization of the Shapley-Ichiishi result
Generalization of knowledge in the labor market
Subjects of the virgin
Subjects of the prints.
Generalization of the worst performance rule across the lifespan
A Generalization of Hall's Specification of the Consumption function
Prices vs quantities: The case of risk averse agents
A Generalization of the Directed Graph Layering Problem