Commentary Archive

Daniel R. Pérez

The Renewable Fuel Standard’s Contribution to National Security is Misconstrued by its Advocates

September 29, 2016

9/29/16 - Advocates of the Renewable Fuel Standard (RFS) often cite its contribution to national security in their list of reasons for either maintaining or expanding the program. Providing security is a first-order priority of government, but the contribution of the RFS to national security is widely misrepresented. Understanding this component of the program is necessary in order to conduct a fair assessment of whether its benefits outweigh its costs.

Daniel R. Pérez

Reaching Across Borders: U.S. – EU Regulatory Cooperation in Practice

September 20, 2016

9/20/16 - The U.S. and EU continue to improve outcomes for their citizens through successful regulatory cooperation despite the continued political rhetoric against international trade. On Thursday, September 15, 2016, the George Washington University Regulatory Studies Center co-hosted a conference with the EU Delegation to the United States on “U.S.-EU International Regulatory Cooperation in Practice.” The conference brought together senior officials from the European Commission and U.S. government, experts and practitioners in the areas of trade and regulatory cooperation, industry stakeholders, and consumer interest groups.

Susan E. Dudley

Improving Evaluation of Chemical Regulations

August 31, 2016

8/31/16 - Ex-ante regulatory impact assessment has a long tradition in many countries but it necessarily depends on unverifiable assumptions and models of how the world would look absent the regulation, and how responses to regulatory requirements will alter those conditions. In essence, ex-ante analyses are hypotheses of the effects of regulatory actions. More consistent and robust evaluation of regulatory outcomes would allow agencies to test those hypotheses. This would be valuable not only for understanding the effect of past actions, but for improving future decisions.

Sofie E. Miller

Mobile Home Regulations Threaten Access to Affordable Housing

August 22, 2016

8/22/16 - Manufactured homes—formerly known as mobile homes—are an affordable source of housing for many elderly and low-income households throughout the U.S. Recently, DOE proposed new energy efficiency standards for manufactured homes that would increase prices in exchange for reduced long-term operating costs. However, this tradeoff may not make sense for many manufactured home owners who live in climates where the cost savings don’t add up. DOE’s proposal doesn’t pass the benefit-cost test, and increased efficiency will price many consumers—particularly low-income consumers—out of the market for homes entirely.

Marcus Peacock

The Big Squeeze on Regulatory Agencies

August 09, 2016

8/9/16 - The latest tally of the amount of money it will take to run federal regulatory programs this fiscal year is $63 billion, a 0.7 percent increase over last year. With the government’s debt held by the public now 75 percent of GDP any increase in spending may seem generous but, for regulatory program managers, it is a reminder that they are living under increasingly tighter budget constraints than in the past. In this commentary, Peacock examines this significant challenge for regulatory agencies and for the next president.

Daniel R. Pérez

Reforms to Student Loans Create More Problems Than They Fix

August 03, 2016

8/3/16 - The Department of Education’s proposed new regulation regarding student loans is getting a lot of attention. It received almost 7,000 public comments on proposed changes to how it administers its Federal Direct Loan Program and its requirements for post-secondary schools whose students pay for tuition using federally funded student loans. Unfortunately, ED has not done its homework. Our comment on the proposed rule finds that is likely to create more problems than it solves. This rule could end up hurting the poor and costing taxpayers up to $4.23 billion per year.

Lili Carneglia

Regulators' Budget Report: OIRA Shrinks as Responsibilities Grow

July 19, 2016

7/19/16 - With the recent release of the George Washington University Regulatory Studies Center’s 2017 Regulator’s Budget, there are increasing concerns surrounding the rate of growth for OIRA staff and budget relative those of other regulatory agencies. OIRA has been regarded as a highly important facet of the regulatory process. Yet, as their responsibilities grow, OIRA is less equipped to handle increased regulatory activity. OIRA’s lack of resources could have a significant impact on the quality of regulatory oversight if the federal budget continues to leave them behind.

Brian Mannix

Beyond the Speed Bump: The New IEX Stock Exchange, and What Happens Next?

June 22, 2016

6/22/16 - After a lengthy and rancorous public comment period, the SEC on Friday did the right thing in approving the application of IEX to become a full-fledged stock exchange. The use of brief delays, such as IEX’s deterministic delay, promises to improve the economic efficiency of financial trading. The Commission also did the right thing in committing to study developments over the next two years. While the internal logic of the IEX exchange is straightforward, the interactions among 13 stock exchanges, each with a different microstructure and timing, will inevitably be complex. The SEC will need to bring additional expertise to bear on the problem of market microstructure.

Susan Dudley

Evolution and Innovation

June 14, 2016

6/14/16 - Government regulations would benefit from a greater appreciation of the ecosystem-like nature of economies and a greater respect for the evolutionary pressures stimulated by competition, choice and decentralized decision-making. We live in a diverse society made up of individuals with varied circumstances and preferences. Regulatory approaches at the national level that reduce competition, choice and feedback disrupt evolutionary processes, protect favored interests from challenge and make the economic ecosystem as a whole less able to adapt and innovate.

Howard Beales

BIAS at the FCC

June 06, 2016

6/6/16 - Regulatory requirements should not create artificial distinctions between competing firms, technologies, or business models. Doing so inevitably distorts competition, inhibits innovation, and harms consumers. Unfortunately, that is precisely what the Federal Communications Commission’s proposed rules governing privacy practices of broadband Internet access service (“BIAS”) providers would do. This commentary examines the impacts of the proposed rules on consumers and the economy and explains how privacy protection should put consumers first.

Tony Cox

A Causal Analytics Toolkit (CAT) for Assessing Potential Causal Relations in Data

May 10, 2016

5/10/16 - To best inform real-world policy decisions, it is necessary for policy analysts, risk analysts, scientists, and economists to attempt to answer the crucial question: How would changing what we choose to do change the consequences that we care about? In a world of realistically incomplete knowledge and imperfect information, the answer is seldom certain. Risk analyst Tony Cox seeks to answer that question with the new Causal Analytics Toolkit (CAT); a powerful, easy-to-use software that make state-of-the-art causal analytics available to anyone who has Microsoft Excel.

Daniel R. Pérez

Protectionist Rhetoric Continues as U.S. and EU Wrap-Up 13th Round of Trade Talks

May 04, 2016

5/4/16 - The success of populist presidential candidates like Donald Trump is fueled, in part, by a surge in opposition to free trade on both ends of the American political spectrum. Meanwhile, the U.S. and EU continue their negotiation of TTIP aimed at increasing economic growth. A recently published report by the GW Regulatory Studies Center, as part of a two-year grant from the EU to conduct policy research and engage public debate, examines regulatory challenges and opportunities to transatlantic trade.

Susan Dudley

President Obama’s Competition Executive Order Could Benefit from a History Lesson

April 19, 2016

4/19/16 - President Obama’s new executive order, aimed at promoting competitive markets, is a welcome announcement. Competition among firms is often the best regulator of undesirable behavior. However, the order and accompanying issue brief fail to recognize that regulation itself, rather than offering a cure for “natural monopoly,” can contribute to some unnatural monopolies. The deregulation of the 1970s and 1980s and competitive markets have generated real gains for consumers and for society as a whole, while markets have evolved in beneficial, previously unanticipated, ways.

Andrew Reamer

The Evidence-Based Policymaking Commission Act: An Opportunity for Improved Regulatory Assessment?

April 06, 2016

4/6/16 - The Evidence-Based Policymaking Commission Act of 2016, a model of bipartisan cooperation, was signed into law on March 30. It establishes a 15-member commission to examine the feasibility of creating a federal data clearinghouse “to facilitate program evaluation, continuous improvement, policy-relevant research, and cost-benefit analyses by qualified researchers and institutions.” The commission’s report is July-August 2017. This commentary explains that while the law’s emphasis is on program assessment, its scope can be expanded to include regulatory assessments.

Susan Dudley

OSHA's Shortsighted Solution to Crystalline Silica Exposure

March 30, 2016

3/30/16 - OSHA issued its long awaited regulation restricting workplace exposure to respirable crystalline silica (RCS) on Friday. Unfortunately, the final rule is unlikely to have the beneficial effects the agency predicts because it doesn’t tackle the core problem. The rule mandates various technologies and practices, but the greatest challenge to reducing risks is not that employers or employees are not motivated to take protective measures, but rather a lack of information, particularly information on the relative toxicity of different forms of silica.