Benefit- Cost Analysis Now One Component of a Regulatory Budget

Heretofore the demonstration that the benefits of a proposed rule exceeded its costs was the only ticket needed to have it promulgated as a final rule.

With the advent of regulatory budgeting the demonstration of positive net benefits for a proposed rule is a necessary but not sufficient condition for its promulgation as a final rule.   Listen at minute 3:30 of a ten minute video presentation on this concept. The background paper is here.

A  Statutory Revision of the Information Quality Act: A Bedrock Requirement for an Effective Artificial Intelligence Program

Dr. Michael Stumborg, a principal scientist at the Center for Naval Analysis, has published a paper in which he concludes:

Congress should make the data quality provisions of the Information Quality Act applicable to all federal government data, not just publicly disseminated data. The Office of Management and Budget guidelines should provide clear, binding, and quantifiable definitions of “utility,” “objectivity,” and “integrity.” Compliance then becomes measureable, and thus, enforceable.

Congress should also define the terms “influential scientific information,” and “affected parties” to make congressional intentions clear, thereby preventing circumvention of the law by discretionary interpretation.

A Miller Analogies Question For Attorneys and Economists

Here is an easy Miller Analogy question for attorneys and economists: judicial review is to attorneys  as ____ is to economists?

Answer:  benefit-cost analysis

Nonetheless the answer is more complex because attorneys tend to emphasize judicial review and economists tend to emphasize benefit-cost analysis when it comes to both managing the administrative state and in challenging it.

The Different Worlds of Academicians and Practitioners

The influence of academicians in our society is underestimated; through their constant flow of publications they establish the administrative record on issues of public policy. Articles in the press come and go but journals are around forever.

Academicians teach future Presidents, Members of Congress, entrepreneurs, judges and their staff as well as future academicians, reporters and other opinion leaders. That said, the administrative record established by academicians could, in some instances, lack completeness. If the resultant void is be closed it is the responsibility of practitioners to do so.

Nonetheless,

Academicians survive because they publish.

Did the Quality of  Life Review Penetrate the Bureaucracy ?

The Quality of Life Review (QLR) was the term given to the first centralized regulatory review process administered by OMB. It predated OIRA review by a decade and was utilized by the Nixon and Ford Administrations.

The Quality of Life Review process differed significantly from the one currently in use by OIRA:

(1) Although its two primary components, OMB review and agency analysis of the benefits and cost of rules are the building blocks of all future Executive Orders on centralized regulatory review, the QLR was conducted by the “budget side” of OMB not a standalone office (OIRA) dedicated exclusively to implementing centralized regulatory review.