By Robert W. Hahn
This monograph addresses the analytical matters raised by means of critics of the industrial research of rules.
Read Online or Download In Defense of The Economic Analysis of Regulation PDF
Similar economic policy & development books
Relentless and ominous, the drumbeat echoes around the land: Social safety is at the verge of financial disaster. The caution has been repeated so frequently that it has turn into a dark article of religion for the hundreds of thousands of american citizens who pay Social defense taxes and count on to assemble advantages sometime. however it is flatly unfaithful.
Additional resources for In Defense of The Economic Analysis of Regulation
For example, Hahn et al. 277 Moreover, the existence of a range of estimates alone is a very superficial measure of the quality of the treatment of uncertainty. The ranges typically have ad hoc endpoints unrelated to probability distributions and so may not represent uncertainty better than no range at all. Getting the agencies to do a better job of addressing uncertainty may not be easy. It has been tried in the past, apparently without much success. 279 It remains to be seen whether the agencies will actually follow this guidance.
241 Heinzerling and Ackerman’s critique of cost-benefit analysis as an analytical tool falls short on several counts. 243 When done judiciously, cost-benefit analysis also considers whether other alternatives can result in higher levels of net benefits. In addition, when data are available, such analysis can provide assessments of economic impacts on particular subgroups within a population, thus assessing distributional or equity issues. It therefore provides a useful device for helping to reach an informed judgment about the relative merits of a policy.
281 I agree, but doing retrospective analyses is costly. And the government often has little incentive to fund such analyses. 282 Nonetheless, I would support funding more research in this area and encouraging government to do more of its own work on this subject. Need for Greater Regulatory Transparency Critics lament the lack of transparency in the regulatory process, and so do I. 283 While I think transparency could and should be improved, it is important to recognize that both the regulatory agencies and the OMB have made significant strides in promoting transparency in recent years.