 How do Regulators Regulate? Enforcement of the Pure Food and Drugs Act, 1907--38The Journal of Law, Economics, and Organization, 2006, vol. 22, issue 2, 459-489 Abstract: Economists have devoted relatively little attention to analyzing how government officials actually enforce regulation. This is a significant omission, since the efficacy of regulatory enforcement and the effects of regulation on economic outcomes may depend on how regulators regulate. This article sheds light on these issues by examining how the fledgling Food and Drug Administration (FDA) enforced the Pure Food and Drugs Act from 1907 to 1938. I argue that because the FDA's ability to enforce this law through deterrence was limited, effective enforcement could be obtained only in those instances where the agency had the capacity to offer benefits to compliant firms in the way of quality certification or direct assistance in improving product quality. The available evidence on the FDA's enforcement activities is consistent with this prediction. The analysis presented may help to explain why contemporary regulatory agencies spend considerable resources on advisory enforcement activities. Copyright 2006, Oxford University Press. Date: 2006 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:oup:jleorg:v:22:y:2006:i:2:p:459-489 Ordering information: This journal article can be ordered from Access Statistics for this article The Journal of Law, Economics, and Organization is currently edited by Andrea Prat More articles in The Journal of Law, Economics, and Organization from Oxford University Press Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. |
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