Economic Analysis On Government Regulation

The essay focuses on the government regulation that is executed by administration authority, while the main purpose is to analyze and illustrate whether there is need of government regulation or to what extent it is needed. The study is mostly spread through the following aspects:Firstly, to answer comprehensively and systematically whether government regulation is needed or to what extent it is needed, we establish the study scope, study methods and analysis manner of the essay in the chapter one.To confirm the study scope, we choose the relationship between the reason of government regulation and market as the start point. Through analyzing the failure and efficiency in resource allocation under market system, and analyzing government essence, we believe the prevailing market system is remaining as a mainly effective way to master the resource allocation, even though there is still much market failure in it. As the government is decided to be an executing organization of the public right even since its foundation, but not a dominant power to confine the resource allocation. The possibility why involve the Government in the resource allocation is due to the market failure during the process of the social resource allocation. Considering the multiform of market failure and the Government concerned resource allocation (government regulation is one of this manners), we take an analysis to the market failure and government concerned resource allocation, especially to its manners and methods, nevertheless to confine the reason for government regulation to the cause of market failure such as natural monopolization \ positive externality \ negative externality \ asymmetry in information. Then we come to decide whether to intervene by the government regulation or not. It can be acknowledged that the essay is focus on the process to the comparative analysis whether to take action or not. So the essay is directly fixed on the government regulation to natural monopolization, to positive externality, to negative externality and to asymmetry in information (four main aspects). The process to economic analysis of the Government regulation and to what degree it is needed, and then to identify the difference between active or inactive in these forward aspects.During the process of the analysis to the government regulation, the essay is mainly focus on theoretical positive analysis, so in most cases the process will be an abstractive deduction. In some of the situation we also take use of empirical positive analysis and experiment economics analysis into consideration.The essay can be categorized to these four steps in brief: First to analyze the economic...