Organizational Capacity, Regulatory Review, and the Limits of Political Control

Alexander Bolton, Rachel Augustine Potter and Sharece Thrower

The Journal of Law, Economics, and Organization, 2016, vol. 32, issue 2, 242-271

Abstract: Studies of administrative politics focus primarily on political control and ignore organizational capacity. We argue that political and organizational factors, as well as the interaction between the two, are necessary for explaining executive policymaking. To test this theory, we consider the Office of Information and Regulatory Affairs (OIRA), an agency often perceived to be the president’s political instrument. Using a new dataset of over 22,000 regulations reviewed by OIRA, we demonstrate that political factors influence review lengths, but organizational factors also exhibit a significant role. We find that reviews are longer when OIRA is understaffed and over-worked. Significantly, we demonstrate that low organizational capacity inhibits the president’s ability to expedite priority rules. Overall, this study highlights the organizational limits of political control. (JEL H11, H83, K23, L50, L51, M50)

Date: 2016
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