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The Political Economy of State-Level Administrative Procedure Acts

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  • de Figueiredo, Rui J P, Jr
  • Vanden Bergh, Richard G

Abstract

One of the most important developments in theories of American bureaucracy has been the claim that organizational procedures that are enacted by public officials have a significant impact on the nature of both bureaucratic control and performance. This development has been accompanied, however, by limited empirical investigation. We address this gap by examining the conditions under which administrative procedure acts (APAs) are adopted by the states. In particular, we test five hypotheses derived from the literature as to when a state-level APA (SLAPA) will be adopted. In general, two conditions increase the likelihood that a SLAPA will be adopted: (1) when Democratic legislative supermajorities face a Republican governor and (2) when Democratic control is perceived to be temporary. These results indicate that existing theories emphasizing agency and dynamic effects are empirically valid, albeit with an important qualification: there is a distinctive partisan bias in the usefulness of administrative procedures for these purposes.

Suggested Citation

  • de Figueiredo, Rui J P, Jr & Vanden Bergh, Richard G, 2004. "The Political Economy of State-Level Administrative Procedure Acts," Journal of Law and Economics, University of Chicago Press, vol. 47(2), pages 569-588, October.
    • Handle: RePEc:ucp:jlawec:y:2004:v:47:i:2:p:569-88
    DOI: 10.1086/422980
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    References listed on IDEAS

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    1. de Figueiredo, Rui Jr., 2003. "Budget institutions and political insulation: why states adopt the item veto," Journal of Public Economics, Elsevier, vol. 87(12), pages 2677-2701, December.
    2. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    3. McCubbins, Mathew D & Noll, Roger G & Weingast, Barry R, 1987. "Administrative Procedures as Instruments of Political Control," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 3(2), pages 243-277, Fall.
    4. Whitney Newey & Kenneth West, 2014. "A simple, positive semi-definite, heteroscedasticity and autocorrelation consistent covariance matrix," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 33(1), pages 125-132.
    5. Mashaw, Jerry L, 1985. "Prodelegation: Why Administrators Should Make Political Decisions," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 1(1), pages 81-100, Spring.
    6. de Figueiredo, Rui J P, Jr & Spiller, Pablo T & Urbiztondo, Santiago, 1999. "An Informational Perspective on Administrative Procedures," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 15(1), pages 283-305, April.
    7. Spiller, Pablo T & Tiller, Emerson H, 1997. "Decision Costs and the Strategic Design of Administrative Process and Judicial Review," The Journal of Legal Studies, University of Chicago Press, vol. 26(2), pages 347-370, June.
    8. Gary Chamberlain, 1980. "Analysis of Covariance with Qualitative Data," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 47(1), pages 225-238.
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    2. Neal D. Woods, 2018. "Regulatory Analysis Procedures and Political Influence on Bureaucratic Policymaking," Regulation & Governance, John Wiley & Sons, vol. 12(2), pages 299-313, June.
    3. Adam R. Fremeth & Guy L. F. Holburn & Richard G. Vanden Bergh, 2016. "Corporate Political Strategy in Contested Regulatory Environments," Strategy Science, INFORMS, vol. 1(4), pages 272-284, December.
    4. Anupam Nanda & Katherine A. Pancak, 2009. "Broker Duty to Clients: Why States Mandate Minimum Service Requirements," Alumni working papers 2009-01, University of Connecticut, Department of Economics.
    5. Adam Fremeth & Guy Holburn & Pablo Spiller, 2014. "The impact of consumer advocates on regulatory policy in the electric utility sector," Public Choice, Springer, vol. 161(1), pages 157-181, October.
    6. Thomas J. Miceli & Michael P. Stone, 2013. "The Determinants Of State-Level Caps On Punitive Damages: Theory And Evidence," Contemporary Economic Policy, Western Economic Association International, vol. 31(1), pages 110-125, January.
    7. Broughel, James & Bose, Feler & Baugus, Brian, 2022. "A 50-State Review of Regulatory Procedures," Working Papers 10277, George Mason University, Mercatus Center.
    8. Anup Malani & Julian Reif, 2010. "Accounting for Anticipation Effects: An Application to Medical Malpractice Tort Reform," NBER Working Papers 16593, National Bureau of Economic Research, Inc.

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