The effectiveness of regulatory disclosure policies

Regulatory transparency—mandatory disclosure of information by private or public institutions with a regulatory intent—has become an important frontier of government innovation. This paper assesses the effectiveness of such transparency systems by examining the design and impact of financial disclosure, nutritional labeling, workplace hazard communication, and five other diverse systems in the United States. We argue that transparency policies are effective only when the information they produce becomes “embedded” in the everyday decision‐making routines of information users and information disclosers. This double‐sided embeddedness is the most important condition for transparency systems' effectiveness. Based on detailed case analyses, we evaluate the user and discloser embeddedness of the eight major transparency policies. We then draw on a comprehensive inventory of prior studies of regulatory effectiveness to assess whether predictions about effectiveness based on characteristics of embeddedness are consistent with those evaluations. © 2006 by the Association for Public Policy Analysis and Management     

Pricing Outputs: A Case Study in Law Enforcement

This paper discusses the advantages and limitations of economic evaluation as a measurement methodology within the Australian government's outcome and output framework including preliminary benefit–cost analysis of Australian Federal Police investigations. The results suggest that the Australian Federal Police is returning over $5 to the community for every dollar invested in fraud and drug investigations. It is concluded that benefit–cost analysis is a useful tool for comparing the price of an output to the value of an outcome. The method has limitations. Not all outcomes will admit of easy assessment and the information may be difficult to collect. However, the use of surrogate measures and extrapolation of results may overcome most of these limitations.