Regulation as Accounting Theory

University of Wollongong

Research Online
Faculty of Commerce - Accounting & Finance Working Papers 2005 Faculty of Commerce

Regulation as Accounting Theory
M. Gaffikin
University of Wollongong, [e-mail]

Recommended Citation
Gaffikin, M., Regulation as Accounting Theory, School of Accounting & Finance, University of Wollongong, Working Paper 9, 2005. http://ro.uow.edu.au/accfinwp/50

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University of Wollongong
School of Accounting & Finance

Regulation as Accounting Theory

Working Papers Series

M J R Gaffikin

School of Accounting & Finance University of Wollongong Wollongong NSW 2522 Australia Tel [phone] Fax [phone] eMail [e-mail] www.uow.edu.au/commerce/accy/

Regulation as Accounting Theory
Michael Gaffikin Theories of regulation are discussed and compared. Some important issues relating to regulation as a substitute for research in creating theory as discussed.

Over the years there have been many arguments and debates over the necessity for regulation. Those who believe in the efficacy of markets argue that regulation is not necessary as market forces will operate to best serve society and optimise the allocation of resources. However, there are many who point out that markets do not always operate in the best interests of societies so some form of intervention in the form of regulation is necessary. This is obvious in many aspects of society. For example, if there were no road rules for drivers chaos would result on the roads. If there were no restrictions on some “economic” activities then there would not be any need of drug smugglers as the market would indicate the need (demand) for drugs which would subsequently be supplied. These are obviously extreme examples but it is not hard to realise that

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