Abstract

Book Review Essay: Regulation and Deregulation by Isaac Cohen. This article reviews six recent books on regulation in relation to the evolution of the Reagan Administration's regulatory policies. In the current administration, economic efficiency has become the prime goal of regulation and, accordingly, the entire regulatory system has become more market-oriented. Reagan's regulatory reform program rests on two elements: the application of cost-benefit analysis to regulatory decision making, and the creation of tax-based incentive systems to regulatory decision making, and the creation of tax-based incentive systems to correct market failures. These policies are examined in relation to the books under review which discuss the history of regulation in America, the Securities and Exchange Commission, deregulation of the airline industry, and insurance regulation.