Download This PaperMeasuring Regulatory Complexity
122 Pages Posted: 24 Jan 2020 Last revised: 16 May 2025
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Measuring Regulatory Complexity
Measuring Regulatory Complexity
Date Written: May 09, 2025
Abstract
We propose a framework to study regulatory complexity, based on concepts from computer science. We distinguish di erent 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-o between regulatory complexity and precision.
Keywords: Financial Regulation, Regulatory Complexity, Basel Accords
JEL Classification: G18, G28, G41
Suggested Citation: Suggested Citation
