Administrative Process Reform in a Discretionary Age: The Role of Social Consequences

The basic rulemaking procedures of the Administrative Procedure Act have remained intact for thirty-eight years, but now Congress is seriously considering reform of those generic rules. To evaluate the merits of these reform proposals, we must develop criteria against which to judge them. Although procedural reforms are commonly judged against the goals of fairness, accuracy, and procedural efficiency, Professors Schroeder and Magat argue that these are insufficient criteria to apply to administrative process reforms at a time when agencies possess substantial discretion in the rulemaking process. In such a context, procedures have an impact on society in ways not adequately evaluated by the traditional criteria. Discretion means that agencies may choose from a set of possible rules, none of which has been foreclosed by the enabling legislation of the agency. Procedures influence which choices the agency makes and, because these choices alter the regulations and restrictions under which society operates, they affect the social consequences of regulation. This article describes a model of participant behavior necessary to trace the effects of procedures on the social consequences of regulation, articulates a set of criteria to evaluate these social consequences, and then analyzes two frequently proposed generic reforms to the APA: mandatory regulatory impact analysis and oversight by the Office of Management and Budget

Consumer Product Safety Regulation in the United States and the United Kingdom: The Case of Bicycles

We study the effects of bicycle safety regulations in both the United States and the United Kingdom on bicycle accident rates for various population age groups. We find small, statistically significant decreases in the accident rates as the stock of bicycles increases its compliance with the regulations. This result is independent of country, season, and trend effects and holds across a range of age groups. The results run counter to those in similar studies. This appears to reflect our focus on a specific standard, rather than on broad enabling legislation, and the longer time series available.

Smoking Status and Public Responses to Ambiguous Scientific Risk Evidence

Situations in which individuals receive information seldom involve scientific consensus over the level of the risk. When scientific experts disagree, people may process the information in an unpredictable manner. The original data presented here for environmental risk judgments indicate a tendency to place disproportionate weight on the high risk assessment, irrespective of its source, particularly when the experts disagree. Cigarette smokers differ in their risk information processing from nonsmokers in that they place less weight on the high risk judgment when there is a divergence in expert opinion. Consequently, they are more likely to simply average competing risk assessments

An Investigation of the Rationality of Consumer Valuations of Multiple Health Risks

article published in journal of economicsAfter developing a conceptual analysis of consumer valuation of multiple risks, we explore both economic and cognitive hypotheses regarding individual risk-taking. Using a sample of over 1,500 consumers, our study ascertains risk-dollar tradeoffs for the risks associated with using an insecticide and a toilet bowl cleaner. We observe the expected positive valuation of risk reductions andfind empirical supportfor a diminishing in the valuation of risk reduction as the extent of the risk reduction increases. We also find evidence of certainty premiums for the total elimination of one risk, but no strong evidence of additional certainty premiums for the elimination of multiple risks. Strong reference risk effects are evident, as increases in risk were valued much more greatly than were decreases

Informational Regulation of Consumer Health Risks: An Empirical Evaluation of Hazard Warnings

article published in economics journalOn the basis of data from a survey of almost 400 consumers, this article assesses whether consumer behavior is responsive to information about product hazards that is provided in response to regulation. We find that the extent to which consumers take precautions is consistent with the level of risk indicated, the amount of risk information, the specific risk and precaution indicated, and the economic benefits of safety precautions. We also use the patterns of precautionary behavior to analyze the implicit value of the morbidity effects and to assess the consistency of consumer choices. Our findings support the use of product-hazard information as an alternative to more direct regulation of safety risks