2 Matching Annotations
  1. Oct 2017
  2. Apr 2015
    1. There are several other important considerations related to LEB. First, there is a risk of capture of legislation by the domestic industry. Once an inefficient industry comes to rely on LEB for survival, the Ukrainian parliament might find it difficult to rescind the ban in the future. Second, LEB and other similar measures underscore that the Ukrainian parliament finds it acceptable to intervene in functioning of the markets based on empirically dubious rationale. The parliament substitutes the market by deciding how resources should be allocated. In doing so, the parliament teaches the businesses and the industry that they should compete through lobbying in the parliament, financial and informational, rather than through innovation and efficiency improvement in the market place.