This paper analyzes the proposal of the new Lula government for changing the Brazilian regulatory system and the case of Anatel in particular. The proposal is described and analyzed regarding its probable effects on the functioning of the regulatory process. These effects are analyzed using a spatial model that focuses on regulatory risk and credibility costs. Taking the model as given, the paper then analyzes which preferences, perceptions and motivations by the government are compatible with the proposal. The analysis emphasizes the importance of considering political institutions when assessing policy choices and their performance.
regulation; Anatel; credibility cost; political institutions
