Assaf Hamdani, Konstantin Kosenko, Yishay Yafeh, 02 December 2020

Pyramidal groups – tiered structures where an apex firm controls multiple tiers of subsidiaries – allow a small number of powerful individuals or families to dominate many Asian, European and Latin American economies. This column examines the experiences of four countries that adopted measures to dismantle or limit the power of pyramids: the US in the 1930s, Japan under American occupation, Korea in the 1990s, and Israel in the last decade. It concludes that to successfully address concerns of arising from the concentration of economic power and curb the influence of large corporate entities, it is important to implement multiple regulatory tools which can address economy-wide, rather than industry-specific, economic power.

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