Abstract
The existence of independent regulatory agencies - independent bodies which operate at arm´s length from the government and which are not directly accountable to the voters or their elected representatives - is still the object of intense debate. Independent regulatory agencies emerge in democratic policies across the world. It is difficult to find de lege ferenda rationale for their existence in a democracy where public policy is supposed to be made by electorally accountable people and where public institutions are not usually endowed with a high degree of independence. Thanks to economic theories and principles this article reveals a justification of their existence and gives arguments for their creation. The instrumental rationality problem, the problem of time inconsistency and the credible commitment problem constitute a heavy burden for government in some areas. A delegation of regulatory powers in these areas from the government to an independent body represents a solution to all these problems. The knowledge gained from economic theories can be beneficial for comprehension of the functioning of independent authorities and for setting their institutional legal framework.
Published Version
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