Why Government Fails So Often: And How It Can Do Better (75 page)

108
. See, e.g., Glazer & Rothenberg,
Why Government Succeeds and Why It Fails
, 27–33.

109
. Lisa Bernstein has explored this relationship in a series of articles. See, e.g., “Opting Out of the Legal System: Extralegal Contractual Relations in the Diamond Industry,”
Journal of Legal Studies
21 (1992): 115–57; and “Private Commercial Law in the Cotton Industry: Creating Cooperation through Rules, Norms, and Institutions,”
Michigan Law Review
99 (2001): 1724–90.

110
. See Peter H. Schuck,
The Limits of Law: Essays on Democratic Governance
(2000), chap. 13.

CHAPTER 8: IMPLEMENTATION

1
. See, generally, Donald L. Horowitz,
The Courts and Social Policy
(1977); Peter H. Schuck,
Suing Government: Citizen Remedies for Official Wrongs
(1983), chaps. 1, 7; Ross Sandler & David Schoenbrod,
Democracy by Decree: What Happens When Courts Run Government
(2003).

2
. Jeffrey L. Pressman & Aaron Wildavsky,
Implementation: How Great Expectations in Washington Are Dashed in Oakland; Or, Why It’s Amazing That Federal Programs Work at All, This Being a Saga of the Economic Development Administration as Told by Two Sympathetic Observers Who Seek to Build Morals on a Foundation of Ruined Hopes
, 3rd ed., expanded (1984).

3
. Derek Bok,
The Problem with Government
(2001), 136–42.

4
. Pressman & Wildavsky,
Implementation
, 93.

5
. Ibid., chap. 5.

6
. Scott Patterson & Andrew Ackerman, “ ‘Volcker Rule’ Faces New Hurdles,”
Wall Street Journal
, November 20, 2013.

7
. Alan S. Blinder,
After the Music Stopped: The Financial Crisis, the Response, and the Work Ahead
(2013), 296.

8
. Julie Steinberg, “Volcker Rule Stirs Fresh Confusion among Big Banks,”
Wall Street
Journal
, July 8, 2013.

9
. Michael D. Shear & Peter Eavis, “Obama Presses for Action on Bank Rules,”
New York Times
, August 20, 2013.

10
. Pressman & Wildavsky,
Implementation
, 147.

11
. “Stuck to the Ground by Red Tape,”
Economist Technology Quarterly
, June 1, 2013, 3.

12
. Clifford Winston,
Government Failure versus Market Failure: Microeconomic Policy Research and Government Performance
(2006), 16–21.

13
. Ibid., 22–25.

14
. Ron Nixon, “Farm Subsidies Leading to More Water Use,”
New York Times
, June 7, 2013.

15
. Winston,
Government Failure versus Market Failure
, 82 (for the period 1996–2000).

16
. Robert B. Semple Jr., “Where the Trough Is Overflowing,”
New York Times
, June 3, 2012.

17
. Sara Sciammacco, “The Downfall of Direct Payments,”
http://www.ewg.org/downfall-direct-payments
.

18
. See, e.g., Clifford Winston & Jia Yan, “Open Skies: Estimating Travelers’ Benefits from Free Trade in Airline Services” (unpublished manuscript, March 2013; estimating annual gains of at least $5 billion to travelers from such agreements).

19
. Winston,
Government Failure versus Market Failure
, 24–25.

20
. See, e.g., Vivek Wadha,
The Immigrant Exodus: Why America Is Losing the Global Race to Capture Entrepreneurial Talent
(2012).

21
. See George J. Borjas,
Heaven’s Door: Immigration Policy and the American Economy
(1999). For a general review of immigration policy, see Peter H. Schuck, “Immigration,” in Peter H. Schuck & James Q. Wilson, eds.,
Understanding America: The Anatomy of an Exceptional Nation
(2008), chap. 12.

22
. Winston,
Government Failure versus Market Failure
, 35–37.

23
. David Olinger & Eric Gorski, “After 11 Years, U.S. Fire Program Analysis System Still Isn’t Ready,”
Denver Post
, July 1, 2012; U.S. Government Accountability Office,
Wildland Fire Management: Interagency Budget Tool Needs Further Development to Fully Meet Key Objectives
, GAO-09–68, November 24, 2008,
http://www.gao.gov/new.items/d0968.pdf
; U.S. Government Accountability Office,
Station Fire: Forest Service’s Response Offers Potential Lessons for Future Wildland Fire Management
, GAO-12–155, December 16, 2011,
http://www.gao.gov/assets/590/587075.pdf
.

24
.
Sam Peltzman, “The Effects of Automobile Safety Regulation,”
Journal of Political Economy
83 (1975): 677–726.

25
. W. Kip Viscusi, “The Lulling Effect: The Impact of Child-Resistant Packaging on Aspirin and Analgesic Ingestions,”
American Economic Review
74 (1984): 324–27.

26
. W. Kip Viscusi, “Consumer Behavior and the Safety Effects of Product Safety Regulation,”
Journal of Law & Economics
28 (1985): 527–53.

27
. Ian Urbina, “As OSHA Emphasizes Safety, Long-Term Health Risks Fester,”
New York Times
, March 30, 2013.

28
. John Mendeloff, “Enforcement Knowns and Unknowns” (unpublished manuscript, May 2012); John Mendeloff, e-mail to author, July 17, 2013.

29
. Winston,
Government Failure versus Market Failure
, 42–43.

30
. See, e.g., Gregg Easterbrook,
A Moment on the Earth: The Coming Age of Environmental Optimism
(1995).

31
. See Winston Harrington, Richard D. Morgenstern, & Thomas Sterner, eds.
Choosing Environmental Policy
(2004).

32
. Winston Harrington, Richard D. Morgenstern, & Peter Nelson,
On the Accuracy of Regulatory Cost Estimates
, Resources for the Future Discussion Paper (1999).

33
. Winston Harrington,
Grading Estimates of the Benefits and Costs of Federal Regulation
,” Resources for the Future Discussion Paper (2006), 21.

34
. Environmental Protection Agency,
The Benefits and Costs of the Clean Air Act, 1970 to 1990
(1997).

35
. For all three studies, see Environmental Protection Agency, “Benefits and Costs of the Clean Air Act,”
http://www.epa.gov/air/sect812/
.

36
. Indur Goklany,
Clearing the Air: The Real Story of the War on Air Pollution
(1999), chap. 6.

37
. See, e.g., Peter W. Huber, “Safety and the Second Best: The Hazards of Public Risk Management in the Courts,”
Columbia Law Review
85 (1985): 298.

38
. Richard L. Revesz & Allison L. Westfahl Kong, “Regulatory Change and Optimal Transition Relief,”
Northwestern Law Review
105 (2011): 1581–1633.

39
. Mark Jacobson & Arthur van Benthem,
Vehicle Scrappage and Gasoline Policy
, National Bureau of Economic Research Working Paper 19055 (2013).

40
. See, e.g., Joshua Linn & Virginia McConnell, “How Electric Cars Can Increase Greenhouse Gas Emissions,”
Resources
184 (2013): 33.

41
. Kenneth A. Small & Clifford Winston,
Bounding the Welfare Effects of CAFE Standards
, Brookings Institution Working Paper, July 2013.

42
. See David Popp, “Pollution Control Innovations and the Clean Air Act of 1990,”
Journal of Policy Analysis and Management
22 (2003): 641–60.

43
. Richard Schmalensee & Robert N. Stavins, “The SO
₂
Allowance Trading System: The Ironic History of a Grand Policy Experiment,”
Journal of Economic Perspectives
27 (2013): 111–12. However, see also Popp, “Pollution Control Innovations and the Clean Air Act of 1990,” 658.

44
. Winston,
Government Failure versus Market Failure
, 63.

45
. Clifford Winston, “On the Performance of the U.S. Transportation System: Caution Ahead,”
Journal of Economic Literature
(forthcoming, 2013).

46
. Ibid.

47
. Ibid.

48
. Clifford Winston & Fred Mannering,
Implementing Technology to Improve Highway Performance: A Leapfrog Technology Is Going to Be Necessary
. Brookings Institution, May 2013.

49
. Kenneth A. Small, Clifford Winston, & Carol A. Evans,
Road Work
(1989).

50
. Winston,
Government Failure versus Market Failure
, 64–68.

51
. Clifford Winston & Vikram Maheshri, “On the Social Desirability of Urban Rail Transit Systems,”
Journal of Urban Economics
62 (2007): 362–82.

52
.
Robert Puentes, Adie Tomer, & Joseph Kane,
A New Alignment: Strengthening America’s Commitment to Passenger Rail
,
http://www.brookings.edu/~/media/Research/Files/Reports/2013/03/01%20passenger%20rail%20puentes%20tomer/passenger%20rail%20puentes%20tomer.pdf
.

53
. Ron Nixon, “Amtrak Losing Millions Each Year on Food Sales,”
New York Times
, August 2, 2012.

54
. Daniel Hanson, “End the Amtrak Experiment,”
http://www.aei.org/article/economics/fiscal-policy/end-the-amtrak-experiment/
.

55
. Paul Vigna & Betsy Morris, “Boom Time on the Tracks: Rail Capacity, Spending Soar,”
Wall Street Journal
, March 27, 2013.

56
. James Sherk, “Repealing the Davis-Bacon Act Would Save Taxpayers $10.9 Billion,”
http://www.heritage.org/research/reports/2011/02/repealing-the-davis-bacon-act-would-save-taxpayers-$10–9-billion
. See, generally, Armand Thieblot,
The Case against the Davis-Bacon Act: 54 Reasons for Repeal
(2013).

57
. Winston,
Government Failure versus Market Failure
, 69, citing Joel Brinkley, “A U.S. Agency Is Accused of Collusion in Land Deals,”
New York Times
, October 12, 2002.

58
. Ron Nixon, “Amid Capitol Turmoil Postal Service Crisis Drags On,”
New York Times
, November 6, 2013.

59
. U.S. Government Accountability Office,
Multiple Employment and Training Programs: Providing Information on Colocating Services and Consolidating Administrative Structures Could Promote Efficiencies
(January 2011),
http://www.gao.gov/assets/320/314551.pdf
, 11.

60
. Robert J. La Londe, professor of economics, University of Chicago Harris School of Public Policy, e-mail to author, September 12, 2013.

61
. Elisabeth Rosenthal & Andrew W. Lehren, “Effort to Curb Coolant Falters, Sometimes at Home,”
New York Times
, November 23, 2012; Elisabeth Rosenthal & Andrew W. Lehren, “As Coolant Is Phased Out, Smugglers Reap Big Profits,”
New York Times
, September 8, 2012.

62
. James Surowiecki, “The Underground Recovery,”
New Yorker
, April 29, 2013, 22.

63
. The classic treatment is Hernando De Soto,
The Other Path: The Invisible Revolution in the Third World
(1989). See also Peter H. Schuck & Robert E. Litan, “Regulatory Reform in the Third World: The Case of Peru,”
Yale Journal on Regulation
4 (1986): 51–78; and Friedrich Schneider,
The Shadow Economy in Europe, 2010
,
http://media.hotnews.ro/media_server1/document-2011–05–8–8602544–0-shadow.pdf
.

64
. Robert Neuwirth,
The Stealth of Nations: The Global Rise of the Informal Economy
(2011), 18.

65
. Friedrich Schneider,
Size and Measurement of the Informal Economy in 110 Countries around the World
(July 2002)
http://rru.worldbank.org/Documents/PapersLinks/informal_economy.pdf
.

66
. “Bring On the Touts,”
Economist
, August 4, 2012, 10.

67
. Bruce Yandle, “Bootleggers and Baptists: The Education of a Regulatory Economist,”
AEI Journal on Government and Society
7 (1983): 12–16.

68
. See Mark A. R. Kleiman, Nathan P. Caulkins, & Angela Hawken,
Drugs and Drug Policy: What Everyone Needs to Know
(2011), 2. Recent research suggests that marijuana is more toxic than previously believed. See Roni Caryn Rabin, “Legalizing of Marijuana Raises Health Concerns,”
New York Times
, January 7, 2013.