Legal Regulations of Production Plans: Are They Unproductive?
Legal system forces every economic agent operating on the market to fulfil some amount of duties and it alternates their decision making. This regulation moves the equilibria of each individual subject including firms, which have to adjust their production plans in a way prescribed by the law. We de...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Mendel University Press
2016-01-01
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| Series: | Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis |
| Subjects: | |
| Online Access: | https://acta.mendelu.cz/64/6/2039/ |
| _version_ | 1818355620059807744 |
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| author | Marek Litzman Martin Machay |
| author_facet | Marek Litzman Martin Machay |
| author_sort | Marek Litzman |
| collection | DOAJ |
| description | Legal system forces every economic agent operating on the market to fulfil some amount of duties and it alternates their decision making. This regulation moves the equilibria of each individual subject including firms, which have to adjust their production plans in a way prescribed by the law. We develop a theoretical background of production under the legal regulation and compare alternate equilibria with different degrees of legal regulation, which is described as unproductive in economic literature. The model shows that regulated production plans and all used inputs are still productive but the level of satisfaction within the society is decreased. |
| first_indexed | 2024-12-13T19:44:12Z |
| format | Article |
| id | doaj.art-9cb9c7c7283e4985940ce61d4366f97a |
| institution | Directory Open Access Journal |
| issn | 1211-8516 2464-8310 |
| language | English |
| last_indexed | 2024-12-13T19:44:12Z |
| publishDate | 2016-01-01 |
| publisher | Mendel University Press |
| record_format | Article |
| series | Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis |
| spelling | doaj.art-9cb9c7c7283e4985940ce61d4366f97a2022-12-21T23:33:36ZengMendel University PressActa Universitatis Agriculturae et Silviculturae Mendelianae Brunensis1211-85162464-83102016-01-016462039204610.11118/actaun201664062039Legal Regulations of Production Plans: Are They Unproductive?Marek Litzman0Martin Machay1Department of Economics, Faculty of Business and Economics, Mendel University in Brno, Zemědělská 1, 613 00 Brno, Czech RepublicDepartment of Economics, Faculty of Business and Economics, Mendel University in Brno, Zemědělská 1, 613 00 Brno, Czech RepublicLegal system forces every economic agent operating on the market to fulfil some amount of duties and it alternates their decision making. This regulation moves the equilibria of each individual subject including firms, which have to adjust their production plans in a way prescribed by the law. We develop a theoretical background of production under the legal regulation and compare alternate equilibria with different degrees of legal regulation, which is described as unproductive in economic literature. The model shows that regulated production plans and all used inputs are still productive but the level of satisfaction within the society is decreased.https://acta.mendelu.cz/64/6/2039/unproductive activitiesutilityregulationlawproduction plans |
| spellingShingle | Marek Litzman Martin Machay Legal Regulations of Production Plans: Are They Unproductive? Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis unproductive activities utility regulation law production plans |
| title | Legal Regulations of Production Plans: Are They Unproductive? |
| title_full | Legal Regulations of Production Plans: Are They Unproductive? |
| title_fullStr | Legal Regulations of Production Plans: Are They Unproductive? |
| title_full_unstemmed | Legal Regulations of Production Plans: Are They Unproductive? |
| title_short | Legal Regulations of Production Plans: Are They Unproductive? |
| title_sort | legal regulations of production plans are they unproductive |
| topic | unproductive activities utility regulation law production plans |
| url | https://acta.mendelu.cz/64/6/2039/ |
| work_keys_str_mv | AT mareklitzman legalregulationsofproductionplansaretheyunproductive AT martinmachay legalregulationsofproductionplansaretheyunproductive |