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Measuring regulatory complexity

delete2025-10-16
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PRE
AI
J
Jean-Édouard Colliard *
C
Co-Pierre Georg
DOI:10.1016/j.jfineco.2025.104186delete
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Abstract

Abstract

En 中文
We propose a framework to study regulatory complexity, based on concepts from computer science. We distinguish different dimensions of complexity, classify existing measures, develop new ones, compute them on three examples — Basel I, the Dodd–Frank Act, and the European Banking Authority’s reporting rules — and test them using experiments and a survey on compliance costs. We highlight two measures that capture complexity beyond the length of a regulation. We propose a quantitative approach to the policy trade-off between regulatory complexity and precision.

Journal

Journal of Financial Economics cover
Journal of Financial Economics
IF:
12
Papers:
3.8K
Citations:
5.5W

Organization

F
Frankfurt School of Finance and Management
Scholars:
31
Papers: 30
Citations: 1.0K
HEC Paris cover
HEC Paris
Scholars:
43
Papers: 39
Citations: 1.2K