Government

Research

Impartiality, Political Participation, and Federal Budget Process Reform Timothy P. Roth, Adam C. Smith \| Dec 20, 2012 The collapse of the federal budget process and the decline in trust in government threaten the stability of the self-governing republic that we inherited from our nation’s founders. Informed by their moral and political philosophy, we suggest an approach to reforming the budget process aimed at reclaiming that institutional trust. We argue that budget process reform must be animated by two related ideas: First, that post-constitutional statutory law must be impartial, and second, that both citizens and their elected representatives have a right to participate in, and to influence, the political process.	Institutions and State Spending: An Overview Matthew Mitchell, Nick Tuszynski \| Jun 01, 2012 Matt Mitchell and Nick Tuszynski discuss two institutions that have been successful at controlling spending: separate taxing and spending committees, and item-reduction vetoes.
Stock Market Reactions to Political Events Jeff Milyo \| May 02, 2012 The value of some firms is strongly affected by which party controls political power. Stock market reactions to political events demonstrate this. However, contrary to common perception, event studies do not indicate that the ability to make unlimited campaign contributions enhances a firm’s value. Geographic and personal connections to political actors matter more, although there is some evidence that personal connections may be rented via professional lobbying.	Fat Chance: An Analysis of Anti-Obesity Efforts Michael L. Marlow, Sherzod Abdukadirov \| Mar 01, 2012 This working paper analyzes the methods and outcomes of government efforts to control obesity rates.
House of Cards: Reforming America's Housing Finance System Dwight M. Jaffee, Arnold Kling, Peter Wallison, Lawrence J. White, Michael Lea, Anthony B. Sanders, Edward Glaeser \| Feb 29, 2012 This research compendium presents a variety of articles that discuss the problems with housing finance in the U.S. and presents alternative reforms to the current GSE model.	The Political Economy of Medicaid Reform Scott Beaulier, Brandon Pizzola \| Feb 13, 2012 This paper looks at the recent growth in Medicaid spending and attempts to explain Medicaid reform successes and failures by focusing on five reform experiences in Rhode Island, Washington, Florida, Idaho, and Tennessee.

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Testimony & Comments

Measuring the Costs and Benefits of New Rules J. W. Verret \| Apr 17, 2012 After a careful review of the legislative requirements that the SEC consider investor protection, efficiency, competition and capital formation in adopting new rules, I would like to simply offer a list of six items that would demonstrate a sincere commitment by the SEC to fulfill its statutory mission. The first five I will list are in fact required by law if one carefully reads the legislative and judicial history of the SEC’s mandate to consider the economic impact of new rules.	Accountability at FEMA: Is Quality Job #1? Maurice P. McTigue \| Oct 20, 2011 Maurice McTigue testified before the Senate Committee on Homeland Security and Governmental Affairs, Ad Hoc Subcommittee on Disaster Recovery and Intergovernmental Affairs on ways FEMA can become more effective and efficient in reacting to disasters.
Transparency Through Technology: Evaluating Federal Open Government Efforts Jerry Brito \| Mar 09, 2011 Jerry Brito testified before the House Committee on Oversight and Government Reform Subcommittee on Technology, Information Policy, Intergovernmental Relations, and Procurement Reform on open government and government transparency through technology.	Federal Rulemaking and the Regulatory Process Richard Williams \| Jul 27, 2010 In this testimony, Richard Williams, Director of Regulatory Studies and Government Accountability at the Mercatus Center, addresses the key question of whether there are sufficient checks and…
Public Interest Comment on the Draft 2010 Report to Congress on the Benefits and Costs of Federal Regulations and Unfunded Mandates on State, Local, and Tribal Entities Richard Williams, Jerry Ellig, John Morrall \| Jul 06, 2010 As always, OMB has produced a very thorough report based on the instructions provided in the Regulatory-Right-to Know Act. Nevertheless, it is time to re-examine this report to see if it can be made…	Public Interest Comment on Lead Clearance and Clearance Testing Requirements Jerry Ellig \| Jul 01, 2010 The EPA recently proposed a regulation that requires dust wipe testing for lead dust generated by renovations covered by its 2008 Renovation, Repair, and Painting Program rule. Except for a small…

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Research Summaries & Toolkits

Overriding Consumer Preferences With Energy Regulation W. Kip Viscusi, Ted Gayer \| Aug 06, 2012 In the recent Mercatus Center study, “Overriding Consumer Preferences with Energy Regulation,” Ted Gayer, co-director of the Economic Studies program at the Brookings Institution, and W. Kip Viscusi, University Distin- guished Professor of Law, Economics, and Management at Vanderbilt, examined the economic justification for recent U.S. energy regulations proposed by the U.S. Department of Energy, the U.S. Department of Transportation, and the U.S. Environmental Protection Agency (EPA). The study found that the energy-efficiency standards have a relatively minor effect on greenhouse-gas emissions, and—per the regulating agencies’ own estimates—cannot pass cost-benefit analyses based on their environmental benefits alone. To justify these regulations, the agencies relied on estimated benefits derived from correcting consumer “irrationality.”…	Performance and Accountability Jerry Ellig, Jason J. Fichtner, Maurice P. McTigue \| Sep 12, 2011 Congress should conduct rigorous oversight of federal agencies and programs not just to prevent waste, fraud, and abuse, but also because current levels of spending are unsustainable, making spending cuts inevitable.
Budget Gimmicks or the Destructive Art of Creative Accounting Veronique de Rugy \| Jul 12, 2010 There are many budget gimmicks that U.S. government officials use to hide the size of deficits, debts, program costs, and revenue losses. Some strategies include pretending spending does not exist,…	Controlling Federal Spending: Using Past Budgets as Guides for Spending Restraint John Garen \| Jul 12, 2010 Americans are starting to understand that the rapid rise in federal spending and the associated increase in federal deficits is a matter of great concern. As the federal debt amasses, credit markets…
Simple Solutions for the Long-Term Budget Challenge Arnold Kling \| Jul 12, 2010 The United States long-term fiscal outlook is considered by many experts to be unsustainable. If no policy changes are made, the projections beyond 2030 are not really plausible, because by then the…	What Do We Know About the Effect of Fiscal Stimulus Measures? Veronique de Rugy \| Jul 12, 2010 The understandable temptation to take action during a crisis should not lead lawmakers to take counterproductive actions. In response to the financial crisis, Congress passed the American Recovery…

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Speeches & Presentations

Regulation and High Reliability Organizations Jerry Ellig \| May 28, 2009 Jerry Ellig presents before the Department of Energy, Office of Health, Safety and Security in the Visiting Speakers Program about regulation in high reliability organizations, such as…	McTigue Presentation to AGA Annual Conference Maurice P. McTigue \| Jul 29, 2008 Are accountability and transparency public goods? Maurice McTigue addresses this possibility in his PowerPoint presentation to the Association of Government Accountants.
The Effect of Transparency on Ethics, Honor & Results in Government Maurice P. McTigue \| Feb 08, 2008 Maurice McTigue speaks to the World Trade Center in New Orleans regarding transparency in government, and its importance in assuring sustainable economic and social development.	The High Performance Government Organization of the Future Maurice P. McTigue \| Aug 16, 2005 This is a speech given by Maurice McTigue at the Department of Labor's 2005 Senior Executives Leadership Training Conference concerning the necessary attributes of an accountable, results-focused…

Expert Commentary

Why We Should Fear a Do-Something Congress The Umlaut By Jerry Brito \| Feb 07, 2013 As more inevitable breaches are reported, the public will demand that Congress “do something” about the cyber threat from abroad—even if they have no idea what that something should be. As a result, Congress will be more than happy to act by spending gobs of money on “cyber R&D and scholarships,” by exempting companies from privacy laws, and even by licensing cybersecurity professionals.	The SEC Ponders Circumventing Citizens United The Wall Street Journal By J. W. Verret \| Jan 08, 2013 In its January 2010 Citizens United v. FEC decision, the U.S. Supreme Court recognized the First Amendment rights of corporations and unions to spend money in support of causes important to their members. In response, Democrats in Congress introduced a bill requiring publicly traded corporations to disclose these expenditures. The so-called Disclose Act would have expanded the Securities and Exchange Commission's authority to require disclosure of financially relevant information to include small political expenditures.
Pitchman, Pundit Roles at Odds Pittsburgh Tribune-Review By Donald J. Boudreaux \| Oct 25, 2012 Market competition is an ongoing process among sellers to persuade consumers voluntarily to choose among the vast array of goods and services available at any time from different producers. This competition is key to our high standard of living. As long as consumers are free to spend their money as they see fit, producers must serve consumers. This rivalry among producers is driven by producers’ understanding that, in free markets, profits are earned only by those producers who offer to consumers the best deals as judged by consumers .	Financial Markets Are Not 'Every Man For Himself' Buffalo News By Steven Horwitz \| Sep 03, 2012 What destroys this intricate fabric of social cooperation is when politicians and bureaucrats intervene, thinking they know better who should be producing which things and how they should be doing it. The social cooperation of the market relies on the accuracy of those price and profit signals. When government policy attempts to force prices up or down, limit profits or "bail out" losses, it pits us against each other in a struggle for government privileges rather than encouraging cooperation.
Jerry Brito Discusses the Executive Branch's Regulatory Power and Overreach U.S. News and World Report By Jerry Brito \| Aug 21, 2012 If Congress is truly concerned about a president enacting laws that it has chosen to reject, it should reconsider regulatory powers it routinely extends to the executive. On the other hand, if Congress continues to expand the power of the regulatory state, there might come a time when there indeed is nothing the president can't do unilaterally.	Hold on to Your Wallet: The Cost of Corporate Welfare and Rent-Seeking National Review Online By Veronique de Rugy \| Jul 25, 2012 Veronique de Rugy discusses corporate welfare and its effect on economic growth.

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Charts

Projections of U.S. Public Debt Continue to Accelerate

The U.S. is slipping down an unsustainable fiscal path at a much faster rate than before. This unforeseen acceleration in the public debt is important because high levels of debt can have a negative impact on the economy.

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Experts

Jerry Brito

Jerry Brito is a senior research fellow at the Mercatus Center and directs the Technology Policy Program. His primary research interests are technology and telecommunications policy, government transparency and accountability, and the regulatory process.

Antony Davies

Antony Davies is associate professor of economics at Duquesne University and Mercatus Affiliated Senior Scholar at George Mason University. His primary research interests include econometrics, public policy, and economic psychology.

Jerry Ellig

Jerry Ellig is a senior research fellow at the Mercatus Center at George Mason University. His primary research interests include the federal regulatory process, economic regulation, and telecommunications regulation.

Maurice P. McTigue

Maurice McTigue is vice president for outreach at the Mercatus Center at George Mason University. He is director of the Mercatus Center's Government Accountability Project and a member of its Spending and Budget Initiative and State and Local Policy Project.

Matthew Mitchell

Matthew Mitchell is a senior research fellow at the Mercatus Center at George Mason University and the lead scholar on the Project for the Study of American Capitalism. His primary research interests include economic freedom and economic growth, public choice economics, and the economics of government-granted privileges to businesses.

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Videos

Keith Hall discusses the Minimum Wage on Fox 5

Keith Hall | February 13, 2013

Veronique de Rugy Discusses Government Contractors and the Economy on Fox 5

Veronique de Rugy | January 02, 2013

Podcasts

Veronique De Rugy Discusses her Research on the Defense Multiplier on WRVA

Veronique de Rugy | May 21, 2013

Veronique De Rugy Discusses her Research on the Defense Multiplier on WRVA

Download the MP3

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Recent Events

The FY 2014 ‘Budget’: The Proposals and Where We Go from Here

Please join the Mercatus Center at George Mason University’s Capitol Hill Campus for a discussion on the president’s and Congress’s fiscal year 2014 budget proposals—and whether any of the proposals adequately address the nation’s long-term budget challenges.

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Books

All Your Data Are Belong to Us: Liberating Government Data

Jerry Brito | Feb 2010

When government refuses to make itself transparent and open and fails to make public information meaningfully available, hackers will liberate the data. It has happened many times over, and it will…

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Media Clippings

Review: Doing Bad by Doing Good: Why Humanitarian Action Fails

Christopher Coyne | May 21, 2013

Book review in The Huffington Post on Chris Coyne's new book, "Doing Bad by Doing Good: Why Humanitarian Action Fails".

New Study Crushes Conventional Wisdom on Role of Money in Politics

Jeff Milyo, Adriana Cordis

Impartiality, Political Participation, and Federal Budget Process Reform Timothy P. Roth, Adam C. Smith \| Dec 20, 2012 The collapse of the federal budget process and the decline in trust in government threaten the stability of the self-governing republic that we inherited from our nation’s founders. Informed by their moral and political philosophy, we suggest an approach to reforming the budget process aimed at reclaiming that institutional trust. We argue that budget process reform must be animated by two related ideas: First, that post-constitutional statutory law must be impartial, and second, that both citizens and their elected representatives have a right to participate in, and to influence, the political process.	Institutions and State Spending: An Overview Matthew Mitchell, Nick Tuszynski \| Jun 01, 2012 Matt Mitchell and Nick Tuszynski discuss two institutions that have been successful at controlling spending: separate taxing and spending committees, and item-reduction vetoes.
Stock Market Reactions to Political Events Jeff Milyo \| May 02, 2012 The value of some firms is strongly affected by which party controls political power. Stock market reactions to political events demonstrate this. However, contrary to common perception, event studies do not indicate that the ability to make unlimited campaign contributions enhances a firm’s value. Geographic and personal connections to political actors matter more, although there is some evidence that personal connections may be rented via professional lobbying.	Fat Chance: An Analysis of Anti-Obesity Efforts Michael L. Marlow, Sherzod Abdukadirov \| Mar 01, 2012 This working paper analyzes the methods and outcomes of government efforts to control obesity rates.
House of Cards: Reforming America's Housing Finance System Dwight M. Jaffee, Arnold Kling, Peter Wallison, Lawrence J. White, Michael Lea, Anthony B. Sanders, Edward Glaeser \| Feb 29, 2012 This research compendium presents a variety of articles that discuss the problems with housing finance in the U.S. and presents alternative reforms to the current GSE model.	The Political Economy of Medicaid Reform Scott Beaulier, Brandon Pizzola \| Feb 13, 2012 This paper looks at the recent growth in Medicaid spending and attempts to explain Medicaid reform successes and failures by focusing on five reform experiences in Rhode Island, Washington, Florida, Idaho, and Tennessee.

Measuring the Costs and Benefits of New Rules J. W. Verret \| Apr 17, 2012 After a careful review of the legislative requirements that the SEC consider investor protection, efficiency, competition and capital formation in adopting new rules, I would like to simply offer a list of six items that would demonstrate a sincere commitment by the SEC to fulfill its statutory mission. The first five I will list are in fact required by law if one carefully reads the legislative and judicial history of the SEC’s mandate to consider the economic impact of new rules.	Accountability at FEMA: Is Quality Job #1? Maurice P. McTigue \| Oct 20, 2011 Maurice McTigue testified before the Senate Committee on Homeland Security and Governmental Affairs, Ad Hoc Subcommittee on Disaster Recovery and Intergovernmental Affairs on ways FEMA can become more effective and efficient in reacting to disasters.
Transparency Through Technology: Evaluating Federal Open Government Efforts Jerry Brito \| Mar 09, 2011 Jerry Brito testified before the House Committee on Oversight and Government Reform Subcommittee on Technology, Information Policy, Intergovernmental Relations, and Procurement Reform on open government and government transparency through technology.	Federal Rulemaking and the Regulatory Process Richard Williams \| Jul 27, 2010 In this testimony, Richard Williams, Director of Regulatory Studies and Government Accountability at the Mercatus Center, addresses the key question of whether there are sufficient checks and…
Public Interest Comment on the Draft 2010 Report to Congress on the Benefits and Costs of Federal Regulations and Unfunded Mandates on State, Local, and Tribal Entities Richard Williams, Jerry Ellig, John Morrall \| Jul 06, 2010 As always, OMB has produced a very thorough report based on the instructions provided in the Regulatory-Right-to Know Act. Nevertheless, it is time to re-examine this report to see if it can be made…	Public Interest Comment on Lead Clearance and Clearance Testing Requirements Jerry Ellig \| Jul 01, 2010 The EPA recently proposed a regulation that requires dust wipe testing for lead dust generated by renovations covered by its 2008 Renovation, Repair, and Painting Program rule. Except for a small…

Overriding Consumer Preferences With Energy Regulation W. Kip Viscusi, Ted Gayer \| Aug 06, 2012 In the recent Mercatus Center study, “Overriding Consumer Preferences with Energy Regulation,” Ted Gayer, co-director of the Economic Studies program at the Brookings Institution, and W. Kip Viscusi, University Distin- guished Professor of Law, Economics, and Management at Vanderbilt, examined the economic justification for recent U.S. energy regulations proposed by the U.S. Department of Energy, the U.S. Department of Transportation, and the U.S. Environmental Protection Agency (EPA). The study found that the energy-efficiency standards have a relatively minor effect on greenhouse-gas emissions, and—per the regulating agencies’ own estimates—cannot pass cost-benefit analyses based on their environmental benefits alone. To justify these regulations, the agencies relied on estimated benefits derived from correcting consumer “irrationality.”…	Performance and Accountability Jerry Ellig, Jason J. Fichtner, Maurice P. McTigue \| Sep 12, 2011 Congress should conduct rigorous oversight of federal agencies and programs not just to prevent waste, fraud, and abuse, but also because current levels of spending are unsustainable, making spending cuts inevitable.
Budget Gimmicks or the Destructive Art of Creative Accounting Veronique de Rugy \| Jul 12, 2010 There are many budget gimmicks that U.S. government officials use to hide the size of deficits, debts, program costs, and revenue losses. Some strategies include pretending spending does not exist,…	Controlling Federal Spending: Using Past Budgets as Guides for Spending Restraint John Garen \| Jul 12, 2010 Americans are starting to understand that the rapid rise in federal spending and the associated increase in federal deficits is a matter of great concern. As the federal debt amasses, credit markets…
Simple Solutions for the Long-Term Budget Challenge Arnold Kling \| Jul 12, 2010 The United States long-term fiscal outlook is considered by many experts to be unsustainable. If no policy changes are made, the projections beyond 2030 are not really plausible, because by then the…	What Do We Know About the Effect of Fiscal Stimulus Measures? Veronique de Rugy \| Jul 12, 2010 The understandable temptation to take action during a crisis should not lead lawmakers to take counterproductive actions. In response to the financial crisis, Congress passed the American Recovery…

Regulation and High Reliability Organizations Jerry Ellig \| May 28, 2009 Jerry Ellig presents before the Department of Energy, Office of Health, Safety and Security in the Visiting Speakers Program about regulation in high reliability organizations, such as…	McTigue Presentation to AGA Annual Conference Maurice P. McTigue \| Jul 29, 2008 Are accountability and transparency public goods? Maurice McTigue addresses this possibility in his PowerPoint presentation to the Association of Government Accountants.
The Effect of Transparency on Ethics, Honor & Results in Government Maurice P. McTigue \| Feb 08, 2008 Maurice McTigue speaks to the World Trade Center in New Orleans regarding transparency in government, and its importance in assuring sustainable economic and social development.	The High Performance Government Organization of the Future Maurice P. McTigue \| Aug 16, 2005 This is a speech given by Maurice McTigue at the Department of Labor's 2005 Senior Executives Leadership Training Conference concerning the necessary attributes of an accountable, results-focused…

Why We Should Fear a Do-Something Congress The Umlaut By Jerry Brito \| Feb 07, 2013 As more inevitable breaches are reported, the public will demand that Congress “do something” about the cyber threat from abroad—even if they have no idea what that something should be. As a result, Congress will be more than happy to act by spending gobs of money on “cyber R&D and scholarships,” by exempting companies from privacy laws, and even by licensing cybersecurity professionals.	The SEC Ponders Circumventing Citizens United The Wall Street Journal By J. W. Verret \| Jan 08, 2013 In its January 2010 Citizens United v. FEC decision, the U.S. Supreme Court recognized the First Amendment rights of corporations and unions to spend money in support of causes important to their members. In response, Democrats in Congress introduced a bill requiring publicly traded corporations to disclose these expenditures. The so-called Disclose Act would have expanded the Securities and Exchange Commission's authority to require disclosure of financially relevant information to include small political expenditures.
Pitchman, Pundit Roles at Odds Pittsburgh Tribune-Review By Donald J. Boudreaux \| Oct 25, 2012 Market competition is an ongoing process among sellers to persuade consumers voluntarily to choose among the vast array of goods and services available at any time from different producers. This competition is key to our high standard of living. As long as consumers are free to spend their money as they see fit, producers must serve consumers. This rivalry among producers is driven by producers’ understanding that, in free markets, profits are earned only by those producers who offer to consumers the best deals as judged by consumers .	Financial Markets Are Not 'Every Man For Himself' Buffalo News By Steven Horwitz \| Sep 03, 2012 What destroys this intricate fabric of social cooperation is when politicians and bureaucrats intervene, thinking they know better who should be producing which things and how they should be doing it. The social cooperation of the market relies on the accuracy of those price and profit signals. When government policy attempts to force prices up or down, limit profits or "bail out" losses, it pits us against each other in a struggle for government privileges rather than encouraging cooperation.
Jerry Brito Discusses the Executive Branch's Regulatory Power and Overreach U.S. News and World Report By Jerry Brito \| Aug 21, 2012 If Congress is truly concerned about a president enacting laws that it has chosen to reject, it should reconsider regulatory powers it routinely extends to the executive. On the other hand, if Congress continues to expand the power of the regulatory state, there might come a time when there indeed is nothing the president can't do unilaterally.	Hold on to Your Wallet: The Cost of Corporate Welfare and Rent-Seeking National Review Online By Veronique de Rugy \| Jul 25, 2012 Veronique de Rugy discusses corporate welfare and its effect on economic growth.