Week 1: Regulation and Regulatory Process

Progressive Era (1800s)
-collectivism over individual
- distrust in free markets
- population growth

do whats best for the group over the individual

implements market interventions on large firms and certain personal behaviors
- advise businesses and other agencies
- conduct investigations
- enforce rules and levy sanctions

rules enacted through a democratic process
- define unacceptable behaviors and sanctions
- implemented in criminal and civil justice systems
- accountable to judicial oversight
- authorizes regulations

against state or communit

between private parties (ex. property rights)

rules enacted by an agency, not a democratic process
- define unacceptable behaviors and sanctions
- implemented by agencies and administrative courts
- cannot authorize laws

- several processes
- occurs within exec branch and federal agencies
- Administrative Procedures Act 1946

1. congress delegates authority to an agency that drafts proposed rules
2. OIRA and EB review; oversee interagency coordination; solicit impact for economically significant rules (cost benefit assessment)
3. drafts published in the Federal Register and regulations.gov
4. draft is finalized
5. final rules treated as law
6. rules can be challenged in court

panel of judges (like court), less public involvement

rapidly created rules, done through agencies not congress

if agency thinks rule is non-controversal/ routine

announcement from an agency that isn't legally binding, people tend to follow

old regulation that is applied to new rule making

combination of regulatory processes