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This text defines the problem, describes the regulatory response and analyzes the effects of rate regulation. It demonstrates how regulation intended to control costs can exacerbate cost growth by subsidizing high-risk activities and firms at the expense of low-risk activities and firms.
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This text defines the problem, describes the regulatory response and analyzes the effects of rate regulation. It demonstrates how regulation intended to control costs can exacerbate cost growth by subsidizing high-risk activities and firms at the expense of low-risk activities and firms.