Time is money: the cost of waiting for the government

In recent years, the literature on the costs of regulation has steadily expanded. However, most studies only include partial analysis of regulatory costs, rendering it impossible to assess the proportionality of regulation. Delay costs are one of the costs of regulation that are generally neglected by scholars. These costs comprise the loss of opportunities and revenues endured while waiting for a government decision - for instance, on a permit application. This article explores the character and volume of these delay costs and, for the first time, discusses the optimal time constraint for a permit application. Additionally, I assess the willingness of Flemish businesses to pay to reduce the waiting time for permit applications. A stated preference analysis reveals that large businesses attach relatively less value to speedy permit procedures. In contrast, small-business owners are relatively more willing to pay to reduce the waiting time for a decision on a permit application.