scholarly journals Has Economic Analysis Improved Regulatory Decisions?

2008 ◽  
Vol 22 (1) ◽  
pp. 67-84 ◽  
Author(s):  
Robert W Hahn ◽  
Paul C Tetlock
Keyword(s):  
Economic Analysis ◽  
Regulatory Policy ◽  
Benefit Cost Analysis ◽  
Regulatory Decision ◽  
Improve Measurement ◽  
Economic Tools ◽  
Benefit Cost ◽  
Regulatory Decisions ◽  
The Impact

In response to the increasing impact of regulation, several governments have introduced economic analysis as a way of trying to improve regulatory policy. This paper provides a comprehensive assessment of government-supported economic analysis of regulation. We find that there is growing interest in the use of economic tools, such as benefit–cost analysis; however, the quality of analysis in the U.S. and European Union frequently fails to meet widely accepted guidelines. Furthermore, the relationship between analysis and policy decisions is tenuous. To address this situation, we recommend pursuing an agenda in which economics plays a more central role in regulatory decision making. In addition, we suggest that prediction markets could help improve regulatory policy and improve measurement of the impact of regulation.

The Council on Wage and Price Stability: A Retrospective

2015 ◽  
Vol 6 (2) ◽  
pp. 400-431 ◽  
Author(s):  
Thomas Hopkins ◽  
Laura Stanley
Keyword(s):  
Economic Analysis ◽  
Cost Analysis ◽  
Regulatory Agencies ◽  
Price Stability ◽  
Executive Order ◽  
Regulatory Oversight ◽  
White House ◽  
Benefit Cost Analysis ◽  
Benefit Cost ◽  
Regulatory Decisions

Applying benefit-cost analysis in the White House regulatory oversight process served as a basic mission of the Council on Wage and Price Stability (CWPS) during its seven-year lifespan (1974–1981). This paper reviews that CWPS experience, which involved filing comments in over 300 proceedings at more than 25 federal regulatory agencies. The paper draws on those CWPS public comments (filings), identifying persistent and pervasive deficiencies in the economic analysis regulators then and now often use as support for new regulation. CWPS filings fostered greater acceptance of benefit-cost analysis in regulatory decisions; such analysis is now required by executive order.

scholarly journals Comparing the Application of CEA and BCA to Tuberculosis Control Interventions in South Africa

2019 ◽  
Vol 10 (S1) ◽  
pp. 132-153 ◽  
Author(s):  
Thomas Wilkinson ◽  
Fiammetta Bozzani ◽  
Anna Vassall ◽  
Michelle Remme ◽  
Edina Sinanovic
Keyword(s):  
South Africa ◽  
South African ◽  
Methodological Approach ◽  
Value Of Statistical Life ◽  
Policy Recommendations ◽  
Benefit Cost Analysis ◽  
Tb Control ◽  
Statistical Life ◽  
Benefit Cost ◽  
The Impact

Achieving ambitious targets to address the global tuberculosis (TB) epidemic requires consideration of the impact of competing interventions for improved identification of patients with TB. Cost-effectiveness analysis (CEA) and benefit-cost analysis (BCA) are two approaches to economic evaluation that assess the costs and effects of competing alternatives. However, the differing theoretical basis and methodological approach to CEA and BCA is likely to result in alternative analytical outputs and potentially different policy interpretations. A BCA was conducted by converting an existing CEA on various combinations of TB control interventions in South Africa using a benefits transfer approach to estimate the value of statistical life (VSL) and value of statistical life year (VSLY). All combinations of interventions reduced untreated active disease compared to current TB control, reducing deaths by between 5,000 and 75,000 and resulting in net benefits of Int$3.2–Int$137 billion (ZAR18.1 billion to ZAR764 billion) over a 20-year period. This analysis contributes to development and application of BCA methods for health interventions and demonstrates that further investment in TB control in South Africa is expected to yield significant benefits. Further work is required to guide the appropriate analytical approach, interpretation and policy recommendations in the South African policy perspective and context.

A COMPARISON OF PHARMACEUTICAL REIMBURSEMENT AGENCIES' PROCESSES AND METHODS IN FRANCE AND SCOTLAND

2012 ◽  
Vol 28 (2) ◽  
pp. 187-194 ◽  
Author(s):  
Matthew Bending ◽  
John Hutton ◽  
Clare McGrath
Keyword(s):  
Health Economic ◽  
Economic Analysis ◽  
Treatment Guidelines ◽  
Meta Analysis ◽  
Health Resources ◽  
Health Economic Analysis ◽  
The Common ◽  
Appraisal Processes ◽  
The Impact

Objectives:Pharmaceutical reimbursement agencies’ processes and methods of appraisal vary across countries. The objective of this study was to examine the contribution of formal health economic analysis in a process using such analysis in Scotland in comparison to a process not routinely using such analysis in France.Methods:A framework for classifying reimbursement systems was used to analyze the two systems. A typology of recommendation was defined and a qualitative analysis of decisions on a sample of medicines appraised by both reimbursement agencies was conducted. Reasons for differences in recommendations were analyzed and case studies selected to illustrate the common reasons.Results:Thirty-nine common medicines appraised by both agencies were identified between 2005 and 2010, treating a variety of diseases for which the Scottish Medicines Consortium tended to provide more restrictive, or did not recommend, listing. Similarities in clinical evidence submitted to the respective reimbursement committees were observed. Differences in recommendation can be explained by a combination of the manufacturer's freedom to set price and the incentives provided by the consideration of health economic analysis and quality of life, alongside differences in relevant comparators, relevant outcomes, treatment guidelines, and the propensity to use network meta-analysis, in decision making.Conclusions:This study provides some explanations and hypotheses for the differences observed in recommendations for a selected sample of medicines with regards to differences in appraisal processes and methods adopted. Further research using larger datasets may allow stakeholders to assess the impact of such differences on the efficient use of health resources.

Evaluating Regulatory Impact Assessments in Education Policy

2018 ◽  
Vol 40 (3) ◽  
pp. 335-353
Author(s):  
Clive R. Belfield ◽  
A. Brooks Bowden ◽  
Viviana Rodriguez
Keyword(s):  
Cost Analysis ◽  
Federal Government ◽  
Best Practice ◽  
Net Present Value ◽  
Social Benefit ◽  
Present Value ◽  
Benefit Cost Analysis ◽  
Regulatory Decision ◽  
Regulatory Impact ◽  
Benefit Cost

Benefit–cost analysis is an important part of regulatory decision-making, yet there are questions as to how often and how well it is performed. Here we examine 28 Regulatory Impact Assessments performed by the federal government on education regulations since 2006. We find many Regulatory Impact Assessments estimated costs, albeit using informal methods, but most failed to adequately report benefits. Also, most studies did not estimate net present value or clearly report methodological assumptions. In reviewing the relatively high quality studies we identified a number of discrepancies from best practice. Most importantly, few Regulatory Impact Assessments attempted a social benefit–cost analysis: Most examined “administrative burdens” from compliance with legislation. This alternative focus on administrative burdens has significant implications for economic evaluation in practice.

One Step Forward, Two Steps Back? The New U.S. Regulatory Budgeting Rules in Light of the International Experience

2017 ◽  
Vol 8 (3) ◽  
pp. 291-304
Author(s):  
Andrea Renda
Keyword(s):  
The United States ◽  
Direct Costs ◽  
International Experience ◽  
Executive Order ◽  
Benefit Cost Analysis ◽  
Regulatory Costs ◽  
One Step ◽  
Benefit Cost ◽  
The U.S

Executive Order (EO) 13771 on “Reducing Regulation and Controlling Regulatory Costs” introduces a new regulatory budgeting system in the U.S. federal rulemaking process. International experience suggests that the new rule, aimed both at reducing the number of regulations and the volume of regulatory costs, will focus on a subset of regulatory impacts, most certainly the direct costs imposed by regulation on businesses, or even a subset thereof. The paper discusses possible ways to make sense of the new rule, without undermining the soundness of benefit-cost analysis mandated by EO12866. The paper concludes that the new system, while potentially promoting more retrospective regulatory reviews, will risk fundamentally affecting the quality of regulation in the United States, generating frictions and inefficiencies throughout the administration, to the detriment of social welfare.

Is there a role for benefit-cost analysis in environmental, health, and safety regulation?

1997 ◽  
Vol 2 (2) ◽  
pp. 195-221 ◽  
Author(s):  
KENNETH J. ARROW ◽  
MAUREEN L. CROPPER ◽  
GEORGE C. EADS ◽  
ROBERT W. HAHN ◽  
LESTER B. LAVE ◽  
...  
Keyword(s):  
Economic Analysis ◽  
Cost Analysis ◽  
Environmental Health ◽  
Health And Safety ◽  
Regulatory Process ◽  
Safety Regulation ◽  
Environmental Health And Safety ◽  
Specific Approach ◽  
Benefit Cost Analysis ◽  
Benefit Cost

The growing impact of regulations on the economy has led both Congress and the Administration to search for new ways of reforming the regulatory process. Many of these initiatives call for greater reliance on the use of economic analysis in the development and evaluation of regulations. One specific approach being advocated is benefit-cost analysis, an economic tool for comparing the desirable and undesirable impacts of proposed policies.

scholarly journals Protected Cultivation of Horticultural Crops in Uttarakhand: An Economic Analysis

Agronomy ◽  
2021 ◽  
Vol 11 (4) ◽  
pp. 692
Author(s):  
Pramod Kumar ◽  
Amit Kar ◽  
Dharam Raj Singh ◽  
Anbukkani Perumal ◽  
Satish Gowda Chirathahalli Shivamurthy ◽  
...  
Keyword(s):  
Economic Analysis ◽  
Group Discussion ◽  
Crop Productivity ◽  
Primary Data ◽  
Horticultural Crops ◽  
Subsidy Scheme ◽  
Protected Cultivation ◽  
Farm Produce ◽  
The Impact

In recent times, with the globalization of markets, shrinking of land and climate change, food basket diversification, increase in demand for nutrient-rich food, the protected cultivation of high-value crops (HVCs) have assumed a pivotal role in augmenting higher crop productivity and profitability and enhancing nutritional security of the growing population. In this context, a study was undertaken to analyze the impact of protected cultivation in horticultural crops in the districts of Almora and Dehradun in the Uttarakhand state. It was mainly based on primary data obtained through a primary survey and focus group discussion with the 96 farmers practicing protected cultivation by using a well-structured and pre-tested questionnaire. In economic analysis, the project analysis tools were used to assess the feasibility of the protected cultivation. The study clearly demonstrated that the cultivation of vegetables and flowers under protected cultivation is a highly profitable enterprise. However, the findings of the study indicated that the subsidy scheme needs to be continued to encourage maximum farmers to adopt protected cultivation and farmers need to be encouraged to form farmers producers organizations (FPOs), which would help them in seeking better quality of inputs and enhancing negotiating power in the market to realize maximum returns for their farm produce.

scholarly journals On the Relationship between the Economic Indicators Basis and the Parameters of Managerial Decisions Development in an Organization

2019 ◽  
Vol 29 (1) ◽  
pp. 155-165
Author(s):  
Tatуana Alexandrova
Keyword(s):  
Economic Analysis ◽  
Advantages And Disadvantages ◽  
Managerial Decisions ◽  
Analysis Methodology ◽  
Eurasian Economic Union ◽  
Border Trade ◽  
Analytical Work ◽  
The Impact ◽  
The Relationship

The article deals with one of the key problems of the economic analysis methodology, i.e. with defining the basis of comparison of indicators and methods to obtain them. In the course of the research, the procedure of intercompany comparison was studied. The bases of comparison are defined; their advantages and disadvantages are singled out. The conditions under which it is advisable to use a certain basis of comparison when conducting economic analysis are formulated. Special attention is paid to the impact of the selected bases of comparison on the analysis reliability, as well as on the speed and quality of decision-making. The choice of alternative management solutions based on the use of different bases of indicators comparison is substantiated. Export activities of a Eurasian Economic Union enterprise involved in cross-border trade are analyzed as an example. The results of this research can be used in the analytical work of the organization to improve the reliability assessment of economic performance and the effectiveness of the managerial decisions development.

Dynamic Benefit–Cost Analysis for Controlling Perennial Pepperweed (Lepidium latifolium): A Case Study

2005 ◽  
Vol 19 (2) ◽  
pp. 237-243 ◽  
Author(s):  
Mark E. Eiswerth ◽  
Loretta Singletary ◽  
John R. Zimmerman ◽  
Wayne S. Johnson
Keyword(s):  
Weed Management ◽  
Economic Losses ◽  
Economic Returns ◽  
Benefit Cost Analysis ◽  
The Future ◽  
Agricultural Yields ◽  
Benefit Cost ◽  
Benefits And Costs

Perennial pepperweed, found throughout the western United States, reduces biodiversity and causes economic losses in the form of control costs as well as decreased quantity and quality of agricultural yields. The future stream of net benefits of weed management and the future point in time at which they will have accumulated enough to equal total management costs were estimated under different land-use and expansion rate scenarios. Benefits and costs were calculated in present value terms by applying a rate of discount to future values. On land used solely for grazing, the total economic returns from management did not equal total costs until 15 yr after initial treatment. However, on land used for grazing plus hay harvest, cumulative benefits equaled and began to exceed cumulative costs after 4 to 5 yr. The costs and benefits of management efforts were also estimated for a landowner, who controls an adjacent infestation before it spreads. This landowner benefited economically from weed management in as little as 5 to 6 yr, highlighting the importance of cooperative efforts to control nearby weed infestations.

Willingness to Pay to Reduce White-Collar and Corporate Crime

2015 ◽  
Vol 6 (2) ◽  
pp. 305-324 ◽  
Author(s):  
Mark A. Cohen
Keyword(s):  
Willingness To Pay ◽  
Corporate Crime ◽  
White Collar ◽  
Securities And Exchange Commission ◽  
Financial Fraud ◽  
Benefit Cost Analysis ◽  
Legitimate Business ◽  
Empirical Estimates ◽  
Benefit Cost ◽  
The Impact

Consumer protection and financial regulatory agencies such as the Federal Trade Commission (FTC), the Securities and Exchange Commission (SEC), and the Consumer Financial Protection Bureau (CFPB) regulate various types of consumer, investor and financial frauds. Whether required or not, rulemaking proceedings oftentimes include some form of benefit-cost analysis. Thus, the benefits of proposed regulations – whether fully quantified or not – are an increasingly important component of rulemaking decisions. Anecdotal evidence suggests that the impact on victims in some cases includes significant time and financial hardships and even pain, suffering, and reduced quality of life. Further, the existence of these offenses causes nonvictims to take costly precautionary behavior and might even inhibit legitimate business activities. Yet, little is known about the true costs of consumer and financial crimes other than the out-of-pocket monetary losses incurred by victims. To the extent society wishes to optimally deter such crimes, without better data on nonmonetary costs, any benefit-cost analyses of criminal justice or prevention programs designed to reduce these crimes will inevitably underestimate program benefits. This paper provides an initial framework and empirical estimates of the willingness to pay (WTP) to reduce four types of white-collar and corporate offenses – consumer fraud, financial fraud, corporate crime, and corporate financial crime. Utilizing a contingent valuation survey approach that has been used to estimate the cost of street crimes, the average WTP for a 10% reduction in each of these four offenses is estimated to range between $35 and $85 per household. In the case of consumer fraud and financial fraud, where estimates of prevalence are available, this translates into a WTP of $1200 per consumer fraud and $12,000 for financial fraud. In contrast, the out-of-pocket costs to victims of consumer fraud have been estimated to average about $100, and about $200 to $250 for various types of financial frauds. These figures also compare favorably to the WTP for a reduced household burglary of $19,000.

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