...result in a lowering of regulatory standards, exposing the host jurisdiction to little additional threat of systemic risk, fraud or other regulatory failures. The problem is that developing metrics of comparability is difficult, and efforts to date have been ad hoc. Such determinations require an analysis that go beyond examining what rules are “on the
books” to the effectiveness of the regulator in promoting compliance with such rules (see, e.g., the literature on enforcement intensity) and the relative sophistication of affected market participants. Until we develop a better understanding of...