The Federal Communications Commission (FCC) has the power to approve or deny any transfer of licenses issued under its jurisdiction. In recent years, the FCC has increasingly been using this power to review mergers and extract regulatory concessions from merging companies as a way to enforce rules that it is otherwise unable or unwilling to promulgate through the normal rulemaking process. The FCC has used its ability to extract these merger conditions to skirt statutory, and in some cases constitutional, limits on its power, posing a threat to good governance, free speech, and the rule of law.
Over the past few years, the federal government and local governments have increasingly turned to “nudges” as solutions to many problems caused by behavioral biases. Such efforts often run into opposition owing to their paternalistic nature, but nonpaternalistic nudges can be equally effective at improving consumers’ choices. In contrast to paternalistic nudges, nonpaternalistic policies do not impose policymakers’ errors on consumers if policymakers misdiagnose the underlying behavioral bias, and they thus avoid harming consumers by pushing them toward suboptimal choices.
The impact of regulation on economic growth has been widely studied, but most research has focused on a narrow set of regulations, industries, or both. In order to better understand the cumulative cost of regulation, a comprehensive look at all regulations across many industries over a long period of time is imperative.
This is the first in a series of papers in which we provide the most comprehensive analysis to date of the impact of the ACA on the individual and small group insurance market in 2014. In this overview, we provide information on how insurers fared in their first year selling QHPs—plans that satisfy all of the ACA’s requirements and are certified to be sold on exchanges—using a data set compiled from medical loss ratio form that insurers are required to file with the Department of Health and Human Services.
In 2002, Congress passed the Medical Device User Fee and Modernization Act, with the aim of pushing the FDA to speed up the approval process for medical devices. This law levied large user fees on medical device manufacturers in exchange for the promise of shorter review times by the FDA. Whether the act has resulted in shorter review times has been unclear. This study conducted a regression analysis to address this question, using data on FDA review times for devices seeking approval between 1991 and 2012.
This paper examines the US Department of Labor’s proposed regulation to extend overtime pay to employees with base salaries of $23,660 to $50,440. While the Department of Labor claims that this change will encourage additional hiring, improve the well-being of employees, and lead to higher paychecks, economic theory and empirical evidence suggest otherwise.
Several federal benefit-cost analyses report an energy paradox among firms in competitive markets and conclude that firms would benefit from mandates to increase the use of energy-saving technologies. The Environmental Protection Agency, for example, presumes that owners of trailers pulled by tractors belonging to others underinvest in energy-saving technologies because trailer owners incur the costs while tractor owners get the benefits. Such findings appear incompatible with neoclassical views that private firms in competitive markets minimize costs.
This study examines the relationship between regulatory expansion and higher prices and asks whether those price increases have a disproportionately negative effect on low-income households. Our results suggest that the poorest households spend a larger proportion of their income on goods that are heavily regulated and subject to both high and volatile prices.
We examine the effect of entry regulation on ambulatory surgical centers and community hospitals and find that there are both more rural hospitals and more rural ambulatory surgical centers per capita in states without a certificate-of-need program regulating the opening of an ambulatory surgical center. This finding indicates that certificate-of-need laws may not be protecting access to rural health care, but are instead correlated with decreases in rural access.
When local governments in the United States and other developed nations become more dependent on the central government’s grants, they tend to become less efficient, spending more and taxing more for the same level of services. Voters can also find it difficult to understand which level of government is responsible for which policy.
In the first half of 2016, the US economy skirted close to recession territory but so far has registered positive growth. What are the major forces that seem to be driving the slow-growth economy? Is the economy getting stronger? Or, will we hit recession territory before the end of the year?
Join us for a discussion with Mercatus Research Fellow Christopher Koopman, who will explain the greatest threats to capitalism today and what reforms could put us on the path to the next Industrial Revolution.
In this book, Adam Thierer argues that if the former disposition, “the precautionary principle,” trumps the latter, “permissionless innovation,” the result will be fewer services, lower-quality goods, higher prices, diminished economic growth, and a decline in the overall standard of living.