Topic I - Why Regulate? Flashcards
(20 cards)
What is a regulation according to Stark?
A legislative-like, binding, prospective, and general norm issued by administrative or executive bodies.
What distinguishes primary and secondary legislation in the US?
Primary legislation is passed by the legislature; secondary is issued by agencies authorized by primary legislation.
Why does the state regulate the economy?
To redistribute income, regulate markets, and stabilize the macroeconomy.
What is the concept of ‘Public Service’ in administrative law?
The state’s activity in providing essential services like education, health, and justice.
What are ‘police powers’?
Government powers to enact laws promoting public safety, health, morality, peace, and welfare.
What is the core idea behind Public Interest Theories of regulation?
Regulation exists to correct market failures and achieve socially desirable outcomes.
What are the assumptions of Public Interest Theories?
Objective expertise, disinterestedness, and benevolent motivation of regulators.
What are criticisms of Public Interest Theories?
Too idealistic, ignores political complexity, and underestimates risk of capture.
What do Interest Group Theories emphasize?
Regulation often serves organized interest groups rather than the public interest.
What is regulatory capture?
When regulators serve the interests of the industry they regulate, not the public.
What are criticisms of Interest Group Theories?
Overemphasize economic motives and ignore political/institutional dynamics.
What do Power of Ideas Theories focus on?
How ideologies and belief systems shape regulation.
What is the main critique of Power of Ideas Theories?
Difficulty in isolating ideas from interests and their lack of predictive power.
What is the focus of Institutional Theories of regulation?
How formal rules, procedures, and norms shape regulatory behavior.
What is blame avoidance in Institutional Theories?
Politicians delegate regulation to avoid being blamed for negative outcomes.
What is Adrian Vermeule’s theory of regulation?
A comprehensive view of regulation as risk management.
According to Coase, what is the key regulatory question in externality situations?
Which harm is greater and who should bear it?
What happens when transaction costs are high, according to Coase?
Private bargaining fails, making regulation necessary.
What does the NYC Airbnb regulation require hosts to do?
Register with the Mayor’s Office and meet safety, zoning, and occupancy requirements.
Why has NYC justified strict short-term rental rules?
To protect affordable housing, avoid neighborhood disruption, and ensure safety.
