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Policy innovation through noise in implementation: Best to be grey (or silver) on Friday, in Halifax

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  • Shaun Hargreaves Heap
  • Oleksandr Talavera

Abstract

When the implementation of regulations requires judgement, there is bound to be noise in the application of the rules, but is there bias in the noise such that policy innovation, in effect, occurs in implementation? We use a recently available large postcode data set on the MOT road safety testing in the UK to answer this question. There is significant bias: the probability of failing varies systematically across postcodes, day of the week and vehicle colour. A national policy is undermined by this variability and we suggest how policy might be adjusted to reduce this unintended policy innovation.

Suggested Citation

  • Shaun Hargreaves Heap & Oleksandr Talavera, 2023. "Policy innovation through noise in implementation: Best to be grey (or silver) on Friday, in Halifax," Scottish Journal of Political Economy, Scottish Economic Society, vol. 70(1), pages 19-37, February.
    • Handle: RePEc:bla:scotjp:v:70:y:2023:i:1:p:19-37
    DOI: 10.1111/sjpe.12302
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    References listed on IDEAS

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    4. Jeffrey Jaffe & R. Westerfield, "undated". "The Week-End Effect in Common Stock Returns: The International Evidence," Rodney L. White Center for Financial Research Working Papers 3-85, Wharton School Rodney L. White Center for Financial Research.
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