The Effectiveness of Competition Policy. Robert W. Crandall The Brookings Institution Lear Conference Rome, Italy 25-26 June, 2009. To Paraphrase Shakespeare (and John Kwoka). “I come not to praise competition policy, nor to “attack” it… but to analyze it”
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The Effectiveness of Competition Policy
Robert W. Crandall
The Brookings Institution
25-26 June, 2009
“… we envision that economists may identify cases where antitrust policy has improved consumer welfare.”
“The economic literature contains little systematic analysis of overall effects of competition law enforcement”.
The effect of competition policy should be registered in increases in output in non-competitive industries; reductions elsewhere
If competition policy has a beneficial effect in certain industries, that effect should be reflected in higher output growth. Why not see if the Competition Policy Indexes (CPIs) affect output growth in these industries?
Alternatively, the authors could examine the effect of the CPIs on economic growth in the spirit of Dutz and Hayri (1999).
Industries with significant coefficients (share of 2007 U.S. GDP):
Total with significant effects 5.8%
Industries with insignificant coefficients:
Professional and Business Services (12.2%); Finance (7.9%); Construction (4.4%);
Transport and Storage (2.9%); Communications (3.2%); Hotels and Restaurants (2.7%);
Electricity, Gas & Water (2.0%)
Real Estate (12.5%); Wholesale and Retail Distribution (12.3%); Education and Health Care (7.9%)