Regulatory Impact Assessment in the Age of Partisan Volatility

Before the last presidential election, a chief executive officer in a regulated industry might have expected that the all but certain transition to a Clinton Administration would be mostly smooth, involving a continuation of policies on a wide range of issues, from greenhouse gas regulation to the fiduciary duties of financial advisors. Instead, the Trump Administration has defined its policy program in terms of reversing the prior Administration’s decisions on as many fronts as possible. Although this turnabout has been particularly intense, it actually marks a continuation of a long-developing trend. This policy oscillation has created little or no public benefit. Putting aside disagreements between partisans about which political party better represents the interests of the American public, let us assume that they are both roughly distant from majoritarian preferences. If this is the case, then the new policies adopted by an electoral winner to replace existing…

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