The theory of regulation and it's evaluation from the perspective of the financial crisis: A quantitative assessment on 2008 crisis

Regulations are legal arrangements which aim to help some social purposes. But sometimes these arrangements may work for some spesific groups? benefits instead of social purposes. Nevertheless regulations have great potential to create significant macro economic results by improving dynamics of groth process fundamentals and source allocation.Literature on economics, there isn?t concencus on regulation arguments. But general view, if regulations are necessarry, it should be in order to maintain conditions of free competition. With the effect of free market based views, which have risen after 1980?s, at 2000?s world has became more global. Especially in financial markets this globalization shows its effect more according to other areas. Crisis become more contagious because of effects of hightened integration. Thus, with 1990?s crisis spread rapidly between many countiries. Until 2007, countries which affacted by crisis had tried to find solution by making regulations on financial markets and monetary policy. But 2008 global crisis showed that financial markets and system should regulate all around the world.This study is an empirical examination of the impact of financial regulation on outputs growth rate. For this purpose, fisrtly elaborated on some concepts such as public intervention, regulation and crisis. At the empirical part of the study, 46 countries was analyzed for the period 2000 to 2009 by using regression techniques.Our results show that after 2008 crisis, aplied financial regulations has positive effect on income at the high income countries.