There’s an embarrassing economic blunder in how OIRA’s jurisdiction is defined.
The Biden Administration is considering changes to how OIRA, the “regulatory czar,” operates. There’s one simple fix the Administration should make. OIRA core function is cost-benefit analysis But the rules establishing OIRA’s jurisdiction contain an error that should make an economist blush: using nominal rather than real (inflation-adjusted) dollars. This means that OIRA is now …CONTINUE READING
It’s hard to estimate benefits. But it turns out costs are also uncertain.
It’s common knowledge— at least, among people who follow these things — that it is hard to estimate the benefits of a proposed climate policy. But it’s actually quite difficult to estimate the costs as well. There are three major problems in estimating the benefits of a proposed climate policy. First, it’s hard to estimate …CONTINUE READING