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Sunsets and federal lawmaking: Evidence from the 110th Congress

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  • Fagan, Frank
  • Bilgel, Fırat

Abstract

We test the hypothesis that the choice to include a sunset provision increases the likelihood that a bill becomes law. We develop a model where the legislator's knowledge of the increase in passage probability from including a sunset provision influences the legislator's choice to do so. Because legislators may either include a sunset provision to increase passage probability, or observe low passage probability and respond with a sunset provision, the choice to include a sunset provision is endogenous. Consequently, the causal effect of temporary enactment is identified by using the legislator's number of offspring as a source of exogenous variation in the choice to include a sunset provision. Employing recursive bivariate probit, we find that the average causal effect of including a sunset provision is sixty percent. We also find that the average causal effect of including sunset provisions in bills that already include them is about twenty percent.

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  • Fagan, Frank & Bilgel, Fırat, 2015. "Sunsets and federal lawmaking: Evidence from the 110th Congress," International Review of Law and Economics, Elsevier, vol. 41(C), pages 1-6.
    • Handle: RePEc:eee:irlaec:v:41:y:2015:i:c:p:1-6
    DOI: 10.1016/j.irle.2014.08.002
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    References listed on IDEAS

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    1. Chiburis, Richard C. & Das, Jishnu & Lokshin, Michael, 2012. "A practical comparison of the bivariate probit and linear IV estimators," Economics Letters, Elsevier, vol. 117(3), pages 762-766.
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    4. Auerbach, Alan J., 2006. "Budget windows, sunsets, and fiscal control," Journal of Public Economics, Elsevier, vol. 90(1-2), pages 87-100, January.
    5. Dalton Conley & Brian J. McCabe, 2008. "Bribery or Just Desserts? Evidence on the Influence of Congressional Voting Patterns on PAC Contributions from Exogenous Variation in the Sex Mix of Legislator Offspring," NBER Working Papers 13945, National Bureau of Economic Research, Inc.
    6. Ebonya L. Washington, 2008. "Female Socialization: How Daughters Affect Their Legislator Fathers," American Economic Review, American Economic Association, vol. 98(1), pages 311-332, March.
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    Cited by:

    1. Nagar, Venky & Schoenfeld, Jordan & Wellman, Laura, 2019. "The effect of economic policy uncertainty on investor information asymmetry and management disclosures," Journal of Accounting and Economics, Elsevier, vol. 67(1), pages 36-57.
    2. Urmee Khan & Frank Fagan, 2018. "Optimal Legal Moments and Stabilization Rules," Working Papers 201807, University of California at Riverside, Department of Economics.
    3. Hsieh, Hui-Ching & Nguyen, Van Quoc Thinh, 2021. "Economic policy uncertainty and illiquidity return premium," The North American Journal of Economics and Finance, Elsevier, vol. 55(C).
    4. Ittai Bar‐Siman‐Tov, 2018. "Temporary legislation, better regulation, and experimentalist governance: An empirical study," Regulation & Governance, John Wiley & Sons, vol. 12(2), pages 192-219, June.
    5. Brian Baugus & Feler Bose & Jeffry Jacob, 2021. "Get in line: Do part‐time legislatures use sunset laws to keep executive agencies in check," Regulation & Governance, John Wiley & Sons, vol. 15(1), pages 185-199, January.

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