October 1, 1990

Regulatory Finance in Alternative Models of Regulation

General Fund Financing Versus Earmarked Taxation
  • Richard Wagner

    Distinguished Senior Fellow, F. A. Hayek Program for Advanced Study in Philosophy, Politics and Economics
  • Mwangi S. Kimenyi

    Former Senior Fellow, Brookings Institution
  • Robert D. Tollison

    J. Wilson Newman Professor and BB&T Senior Fellow, Clemson University
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Nowhere in studies of regulation does one confront the issue of how to account for the costs of the regulator's services. In this paper the authors treat the cost of the regulator as an integral component of the positive theory of regulation. In particular, the study examines what difference it makes whether the cost of the regulator is financed through general-fund appropriations or through special charges imposed upon the regulated activity.

Read the article at ScienceDirect.