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• W1549809087 abstract "In January 2007, President Bush issued an Executive Order changing the procedures for undertaking benefit-cost analyses of proposed regulations. These changes have been hailed by some as dramatic improvements while criticized by others as representing the politicization of the evaluation process. This essay analyzes the major provisions of the new Executive Order, and concludes that it is unlikely to have much of an impact on the number or quality of regulations. Only one provision – subjecting major “guidelines” documents to mandatory benefit-cost analysis – potentially could be important, but even here there is no systematic evidence that agencies have used guidance documents to change the stringency of regulations and thereby to bypass the mandatory regulatory review for regulations. Moreover, the Executive Order leaves untouched the primary weaknesses of benefit-cost analysis as practiced by government agencies, such as the absence of standardization of values for key parameters, the use of inappropriate alternative regulations for comparison with a proposed regulation, and the general lack or either peer review or ex post re-evaluation of regulatory impact studies. Forthcoming, Yale Journal on Regulation. * Professor Emeritus of Economics, Stanford University, and Senior Fellow, Stanford Institute for Economic Policy Research. Helpful comments from Robert Hahn and Gregory Rosston are gratefully acknowledged. 1 The Economic Significance of Executive Order 13422 by Roger G. Noll Executive Order (EO) 13422 is remarkably short, covering barely more than two pages and consisting primarily of a series of small wording changes and inserts into President Clinton’s EO 12866 that established the current regime of mandatory benefit-cost analysis for regulations promulgated by executive branch agencies. Despite its brevity, the new EO has been widely heralded by proponents and critics alike as the most significant change in the process of reviewing new regulations since EO 12866 was released in 1993. The purpose of this essay is to assess the likely economic significance of the new EO. Before evaluating the desirability of the new EO, one must first determine what effects, if any, it is likely to have on regulatory outcomes. My main conclusion is that both the accolades and the criticisms of EO 13422 are over-stated and based less on what the new EO says than on either one’s views about the desirability of benefit-cost analysis generally or one’s evaluation of the 1. “On January 18, 2007, President George W. Bush issued E. O. 13422, making the most significant amendments to E. O. 12866 since it was published. The changes made by this new executive order are controversial, characterized as some as a power grab by the White House that undermines public protections and lessens congressional authority, and by others as a ‘paragon of common sense and good government.’” Curtis W. Copeland, “Changes to the OMB Regulatory Review Process by Executive Order 13422,” CRS Report for Congress RL33862, Congressional Research Service, February 5, 2007." @default.
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• W1549809087 date "2008-01-01" @default.
• W1549809087 modified "2023-09-26" @default.
• W1549809087 title "The Economic Significance of Executive Order 13,422" @default.
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