By Susan E. Dudley and Jerry Brito
Published by Mercatus Center, George Mason University and the George Washington University Regulatory Studies Center
Second Edition (2012)
Introduction
Regulations, also called administrative laws or rules, are the primary vehicles by which the federal government implements laws and agency objectives. They are specific standards or instructions concerning what individuals, businesses, and other organizations can or cannot do.
Market economies need clear rules to function efficiently. Without a legal framework establishing and enforcing property rights and the “rules of the game,” our free enterprise system could not exist. Regulations issued by the executive branch affect every aspect of our lives. From the moment you wake up until the time you go to sleep, regulations influence what you do. Yet most people know very little about the impact of regulations or the process by which they are produced.
This primer provides an overview of federal regulation, covering theory, policy, analysis, and practice. We begin with a look at a day in the life of a regulated American family. Then, this first chapter presents statistics on the size and scope of regulation and classifies regulations into basic categories for subsequent discussion. Chapter 2 explores theories of regulation, while chapter 3 reviews the constitutional underpinnings of executive branch regulation. Chapter 4 describes the process by which the federal government develops regulations, and chapter 5 examines who the regulators are and what incentives they face. Chapters 6 and 7 delve into the nature of regulations, particularly those addressing health, safety, the environment, and the specific industries. In chapter 8, we roll up our sleeves and analyze regulations to understand what makes for good policy. Chapter 9 concludes with a brief look at future trends in regulation.
Regulation touches our everyday lives in thousands of ways that we may never imagine. These rules have both benefits and costs, but most people are unaware of their reach and influence. This primer aims to make the complicated and arcane world of regulation more understandable to interested people outside the Washington, DC, beltway.
Download this Publication (PDF)