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Policy Watch: Government Analysis of the Benefits and Costs of Regulation

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  • Robert W. Hahn

Abstract

Recently, Congress has shown a greater interest in assessing the economic impact of regulation. This interest was driven in part by estimates that federal regulation costs several hundred billion dollars annually. In 1996, Congress required the director of the Office of Management and Budget to provide estimates of the total annual benefits and costs of individual regulations. This essay reviews the increasing use of economic analysis in regulatory decisionmaking, critically assesses the first 0MB report, and considers how the use of economic analysis can help inform regulatory decisionmaking. It argues that policymakers need to address a growing body of evidence that casts doubt on the effectiveness and efficiency of much regulation.

Suggested Citation

  • Robert W. Hahn, 1998. "Policy Watch: Government Analysis of the Benefits and Costs of Regulation," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 201-210, Fall.
    • Handle: RePEc:aea:jecper:v:12:y:1998:i:4:p:201-10
    Note: DOI: 10.1257/jep.12.4.201
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    File URL: http://www.aeaweb.org/articles.php?doi=10.1257/jep.12.4.201
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    Cited by:

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    2. Wallace E. Oates & Paul R. Portney & Wallace E. Oates & Paul R. Portney, 2004. "The Political Economy of Environmental Policy," Chapters, in: Environmental Policy and Fiscal Federalism, chapter 1, pages 3-30, Edward Elgar Publishing.
    3. Mak, James & Sheehey, Christopher & Toriki, Shannon, 2010. "The passenger vessel services act and America's cruise tourism industry," Research in Transportation Economics, Elsevier, vol. 26(1), pages 18-26.
    4. Lee, D. B., 2000. "Methods for evaluation of transportation projects in the USA," Transport Policy, Elsevier, vol. 7(1), pages 41-50, January.
    5. Gunnar Prause & Eunice Omolola Olaniyi, 2019. "A compliance cost analysis of the SECA regulation in the Baltic Sea," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 6(4), pages 1907-1921, June.
    6. Sumit K. MAJUMDAR, 2014. "Regulation And Job Creation: An Analysis Of Institutional Change And Its Consequences," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 85(2), pages 305-325, June.
    7. Nick Wills‐Johnson, 2010. "Railway Dreaming: Lessons for Economic Regulators from Aboriginal Resource Management Lore," Review of Policy Research, Policy Studies Organization, vol. 27(1), pages 47-58, January.
    8. Leyla Gamidullaeva & Saniyat Agamagomedova, 2023. "How Administrative Regulation Institutional Factors Affect the Business Efficiency in a Region: A Case Study of Russian Regions," Economies, MDPI, vol. 11(3), pages 1-17, March.
    9. Matthias Finger & Rolf W. Künneke (ed.), 2011. "International Handbook of Network Industries," Books, Edward Elgar Publishing, number 12961.
    10. Catarina Figueira & David Parker, 2011. "Infrastructure Liberalization: Challenges to the New Economic Paradigm in the Context of Developing Countries," Chapters, in: Matthias Finger & Rolf W. Künneke (ed.), International Handbook of Network Industries, chapter 27, Edward Elgar Publishing.
    11. Kirkpatrick, Colin & Parker, David, 2004. "Regulation and the Privatisation of Water Services in Developing Countries: Assessing the Impact of the General Agreement on Trade in Services (GATS)," Centre on Regulation and Competition (CRC) Working papers 30600, University of Manchester, Institute for Development Policy and Management (IDPM).
    12. Lenka Gregorová & Milan Žák, 2008. "Byrokratická bariéra kvality regulace [Bureaucratic constraint of the quality of regulation]," Politická ekonomie, Prague University of Economics and Business, vol. 2008(2), pages 196-228.
    13. Parker, David, 2001. "Economic Regulation: A Preliminary Literature Review and Summary of Research Questions Arising," Centre on Regulation and Competition (CRC) Working papers 30616, University of Manchester, Institute for Development Policy and Management (IDPM).
    14. Lundkvist, Jonas & Jonsson, Bengt & Rehnberg, Clas, 2006. "The costs and benefits of regulations for reimbursement of new drugs," Health Policy, Elsevier, vol. 79(2-3), pages 337-344, December.

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    More about this item

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis

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