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Does Regulatory Impact Assessment (RIA) Really Evaluate Regulatory Impact? The Case of the Czech Republic

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Abstract

The basic goal of Regulatory Impact Assessment (RIA) is to improve regulatory quality by ex ante selecting the best alternative using cost-benefit analysis and enabling ex post evaluation of the real impact. Both goals are achievable only when RIA is properly implemented for all potential sources of regulation, including parliamentary amendments to bills. But these are usually not subject to RIA. This paper analyzes all bills and related amendments passed in the Czech Republic in 2010 and finds that about 15% of the adopted amendments, distributed among 17 of 34 bills, alter the original impacts of the bill. The results suggest that RIAs are often inapplicable for the ex post evaluation and the best alternative identified by RIA may not be achieved.

Suggested Citation

  • Karel Jara & Jiri Schwarz, 2012. "Does Regulatory Impact Assessment (RIA) Really Evaluate Regulatory Impact? The Case of the Czech Republic," Working Papers IES 2012/29, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Nov 2012.
  • Handle: RePEc:fau:wpaper:wp2012_29
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    File URL: http://ies.fsv.cuni.cz/sci/publication/show/id/4782
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    Keywords

    regulatory impact assessment; policy appraisal; better regulation; legislative process;

    JEL classification:

    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • K20 - Law and Economics - - Regulation and Business Law - - - General
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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