How does government regulation influence the structure of industries? In the coal mining industry increased sfnety can be provided with personal protection devices or with engineering controls; but the type of sfnety standard imposed is important because larger producers have a comparative advantage complying with engineering controls. Time series evidence indicates that the 1969 Coal Mine Health and Sfnety Act, by imposing engineering controls, drove out smaller, less sfne mines, thereby shifting production toward larger mines.
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Fuess et al. (1990) studied this question.
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