Regulation

Regulation

Research

Thomas Stratmann, Jake Russ | Jul 15, 2014
Many states have certificate-of-need regulations, which prohibit hospitals, nursing homes, and ambulatory surgical centers from entering new markets or making changes to the existing capacity of medical facilities without first gaining approval from certificate-of-need regulators.
Matthew Mitchell, Christopher Koopman | Jun 04, 2014
Instead, policymakers should focus on more direct, effective, and less problematic solutions to reduce the tangle of regulatory burdens encountered by craft brewers. Eliminating regulatory burdens for all firms would allow brewers to succeed or fail on the basis of their ability to provide the greatest value to consumers at the lowest cost to society.
John D. Graham , James Broughel | Jun 04, 2014
The papers in our series tell an important story about how federal regulators—whether by design or by effect—circumvent both the APA and OIRA oversight. Regulators thus can achieve their ends without adhering to the standard regulatory procedures that represent part of the checks and balances of American government. These procedures have been designed to ensure that technical expertise drives regulatory decisionmaking, as well as to ensure a certain degree of democratic accountability of regulators to the public.
Sherzod Abdukadirov | May 29, 2014
Over the decades, regulatory reforms have sought to increase agency accountability and improve the quality of regulatory analysis and decision-making, with varying success. In this paper, I draw upon previous reform experiences to identify four criteria for effective reforms.
Aaron L. Nielson | May 15, 2014
Formal rulemaking requires agencies to make policy through a process akin to a trial; it involves cross-examination, burdens of proof, and a bar on ex parte communications. The idea is that formal procedures can help create better substantive policy. This form of rulemaking, however, is almost never used anymore. Instead, informal rulemaking—which is conducted through written comments, with no trial-like procedures—is now essentially the only type of rulemaking used.
John D. Graham , Cory R. Liu | May 13, 2014
This paper illustrates four types of regulatory and quasi-regulatory activities that are operating outside Office of Management and Budget and benefit-cost review: (1) agency issuance of quasi-regulatory documents such as memoranda, policy statements, and guidance documents; (2) agency approval of state regulatory policies under federal laws that authorize selective waiver of federal preemption of state regulation; (3) federal agency issuance of hazard determinations related to technologies, substances, and practices that impact the litigation and regulatory environment; and (4) federal agency decisions to enter into binding agreements with pro-litigants favoring certain regulatory outcomes, where settlements create nondiscretionary agency duties to initiate new rulemakings.

Testimony & Comments

Antony Davies | Jul 28, 2014
There are two important unintended consequences of raising the federal contractor minimum wage: first, it can adversely affect the most vulnerable workers; and second, the rule as currently stated could be enforced in a manner so that its impact would extend to far more businesses than originally intended.
Keith Hall | Apr 07, 2014
This comment addresses Environmental Protection Agency’s request for advice in “developing an ‘analytic blueprint’ of materials on the technical merits and challenges of using economy-wide models to evaluate the social costs, benefits, and economic impacts associated with EPA’s air regulations.” The agency plans to present these materials to a new Science Advisory Board (SAB) panel with “expertise in economy-wide modeling.”…
Todd Nesbit | Mar 04, 2014
It is not clear based on the FDA’s analysis whether its proposed rule is in the best interest of society. FDA makes no attempt to estimate the benefits of the regulation, and the analysis of the costs is very likely biased downward due to questionable assumptions and omissions. Further, changes of behavior are only selectively considered—discussing them when logically leading to benefits but dismissing the costs associated with those changes in behavior.
Patrick McLaughlin | Feb 11, 2014
In examining the reforms under consideration, first, I will discuss why regulatory accumulation is a public policy problem: regulatory accumulation creates substantial drag on economic growth by impeding innovation and entrepreneurship.
John Morrall | Sep 30, 2013
The enormous amount of regulation generated each year and the huge potential for improving it could provide enormous net benefits to society. A strong watchdog agency is needed to provide the transparency and checks and balances needed to set priorities for high-impact regulations. In addition to rebuilding OIRA’s technical staff and enhancing its voice in policy debates with the agencies, several other more subtle steps should be considered by the administrator.
James Broughel | Sep 16, 2013
The Regulatory Studies Program of the Mercatus Center at George Mason University is dedicated to advancing knowledge about the effects of regulation on society. As part of its mission, the program conducts careful and independent analyses that employ contemporary economic scholarship to assess rulemaking proposals and their effects on the economic opportunities and the social well-being available to all members of American society. This comment addresses the efficiency and efficacy of this proposed reconsideration from an economic point of view. Specifically, it examines how the relevant rule may be improved by more closely examining the societal goals the rule intends to achieve and whether this reconsideration will successfully achieve those goals. In many instances, regulations can be substantially improved by choosing more effective regulatory options or more carefully assessing the actual societal problem.

Research Summaries & Toolkits

Patrick McLaughlin, Robert Greene | May 08, 2014
Federal regulators often have good intentions when proposing new rules, such as increasing worker safety or protecting the environment. However, policymakers typically view each regulation on its own, paying little attention to the rapid buildup of rules—many of them outdated and ineffective—and how that regulatory accumulation hurts economic growth.
| Sep 24, 2013
The Mercatus State Policy Guide is intended to summarize and condense the best research available on the most relevant topics. It’s a starting point for discussion, not a comprehensive overview of economic policy. Each statement is supported by academic research, with links provided in the endnotes. Mercatus scholars are available to further explain the results of their studies. We hope the guide will prove to be a valuable tool in your economic policy research.
Christopher Koopman, Nita Ghei | Aug 27, 2013
In the mid-1970s behavioral economics began to challenge the neoclassical rational actor model by fusing the insights of psychology and economics. Over the course of the next 40 years, a prescriptive framework built around these insights shifted focus toward attempting to mitigate the harm individuals cause themselves as a result of what the agencies view as “irrational” behavior.
| Jul 23, 2013
The Mercatus Policy Guide is intended to summarize and condense the best research available on the most pressing topics. It serves as a starting point for discussion, not a comprehensive overview of economic policy. Anyone who wants to go deeper into these studies should consult the references listed at the back. Mercatus scholars are available to further explain the results of their studies. We hope the guide will prove to be a valuable tool in your evaluation of economic policy.
Mark Adams | Mar 04, 2013
The president’s recent proposal to increase the minimum wage to $9.00 is not the way to help low-income households. Raising the minimum wage is more likely to increase unemployment for some of the least skilled American workers and further impede a historically slow recovery. Research from the Mercatus Center shows that regulatory reform would help low-income families without causing more unemployment or slowing the recovery.
Joshua C. Hall, Michael Williams | Feb 05, 2013
The concern that American businesses are overly burdened by regulations has legitimate grounds. In 2011, American companies had to comply with over 1 million federal regulatory restrictions, compared with about 860,000 a decade earlier.[1] However, to truly address concerns about overregulation, policy makers cannot focus exclusively on the growth of new regulations. Attention must also be paid to the lack of an efficient and effective regulatory review process for preexisting rules.

Speeches & Presentations

Jerry Ellig | Mar 20, 2014
Jerry Ellig's presents arguments for improved regulatory impact analysis at the College of Charleston.
James Broughel | Jan 30, 2014
Members of the Science Advisory Board (SAB), thank you for taking the time to hear to my comments this morning. Today’s topic—how to measure the impact of Environmental Protection Agency (EPA) regulations on low-income and minority citizens in the United States—is both timely and important. At the research center where I work, we have begun to explore the consequences of regulations on vulnerable populations. I appreciate the opportunity to share some of our findings and to contribute to this important discussion.
Keith Hall | Jun 14, 2013
Regulation can play an important role in a market economy where there are significant market externalities, incomplete markets, information asymmetries, or public goods. Ideally, regulation identifies and focuses on correcting these market failures with minimal economic cost.
Richard Williams | Jul 08, 2012
The United States system of ensuring food safety (FS) is more than 100 years old and, until very recently, was the primary system designed to ensure FS. The system assumes that primarily federal regulators have the necessary knowledge to instruct food manufacturers on producing safe food, with both federal and state governments enforcing their respective regulations. While there have been notable successes in the last century — such as mandatory pasteurization for milk and other products, low acid canned food rules, and basic sanitation requirements — much of this progress was achieved in the first half of the 20th century. In the last 30 years, the incidence of foodborne disease has changed very little.
Jerry Ellig | Jan 14, 2010
Jerry Ellig participated in panel discussion before Texas policy makers in Austin, Texas at the Texas Public Policy Foundation's Policy Orientation on the future of the Texas Public Utility…
Jerry Ellig | Nov 05, 2009
Jerry Ellig was invited to give a lecture at Pepperdine University about the future of regulations in the federal government.

Mercatus Regulatory Studies



Charts

This chart shows the relationship between the relative minimum wage (the minimum wage as a fraction of the average hourly wage) and unemployment rates for workers with different educational attainments.

Experts

Richard Williams is the vice president for policy research at the Mercatus Center at George Mason University. He is an expert in benefit-cost analysis and risk analysis, particularly associated with food safety and nutrition.
Patrick A. McLaughlin is a Senior Research Fellow at the Mercatus Center at George Mason University.
Sherzod Abdukadirov is a research fellow in the Regulatory Studies Program at the Mercatus Center at George Mason University. He specializes in the federal regulatory process, institutional reforms, food and health, and social complexity.
Jerry Ellig is a senior research fellow at the Mercatus Center at George Mason University and a former assistant professor of economics at George Mason University. He specializes in the federal regulatory process, economic regulation, and telecommunications regulation.
James Broughel is a program manager of the Regulatory Studies Program at the Mercatus Center. Mr. Broughel is a doctoral student in the economics program at George Mason University. He earned his MA in economics from Hunter College of the City University of New York.

Podcasts

| May 02, 2014
Identifying and navigating the regulatory maze applicable to the production of goods, the provision of services, the use of property, and numerous other activities is a daunting task even for the most experienced legal professional. At the federal level, presidents from Carter to Obama have issued executive orders directing agencies to review their regulatory stock in order to eliminate duplicate, obsolete and burdensome rules. What do the results from decades of such efforts tell us?

Upcoming Events

Recent Events

Please join the Mercatus Center at George Mason University and Sam Batkins, Director of Regulatory Policy, American Action Forum for a Regulation University program.

Books

Jerry Brito, Andrea Castillo | Jan 23, 2014
Como la primera moneda digital descentralizada del mundo, Bitcoin tiene el potencial de revolucionar los sistemas de pago en línea de una manera que beneficia a los consumidores y las empresas. En lugar de utilizar un intermediario, como PayPal, o entregar información de tarjeta de crédito a un tercer partido para su verificación—ya que los dos incluyen cargos de transacción y otras restricciones— Bitcoin permite que los individuos paguen directamente entre sí para bienes o servicios.

Media Clippings

Antony Davies | May 07, 2014
Antony Davies quoted at The Hill.
Eli Dourado | Feb 04, 2014
Eli Dourado cited at The Washington Post.
Matthew Mitchell | Oct 22, 2013
Matt Mitchell discusses "Uber Wars" on Reason TV.
Jerry Brito | Oct 03, 2013
Jerry Brito cited at The Wall Street Journal.
Jerry Brito | Oct 03, 2013
Jerry Brito cited at Los Angeles Times.
' '