U.s. Control: From A Command Control To Cost-benefit Analysis

Market economy for developing, normal workings must have systemic government regulation, government regulation must be timely reformed as well as market intensity, trade-off scale, industrial construction have been developed. Under the American constitutional framework, Congress, President, Supreme Court and administrative agencies play complicated game for law, executive order and regulation. "Market failure" and "regulatory failure" have possibly arisen. Institution evolution explores new institution balancing for the solution of the "market failure" and "regulatory failure". For over two decades, the cost-benefit analysis approach of regulation is substituting for "command-control approach". Throughout the paper, we have argued that American market economy is the typical regulated market economy, what are called eliminated regulation, deregulation and re-regulation, government should only aim at regulatory quality and improve market economic efficiency.Cost-benefit analysis is required to estimate the costs of laws with new mandates on state, local, arid tribal governments, and on the private sector, an executive branch agency must prepare a cost-benefit analysis of regulations with new mandates for the impacts of regulations on state, local, and tribal governments or the private sector. The agency is required to choose the "least costly, most cost-effective, or least burdensome alternative," unless the provisions are inconsistent with law or the head of an agency ran explain why such an alternative was not adopted.Cost-benefit analysis is analyzed using a model of agency delegation. In this model an agency observes the state of the world and issues a regulation, which the president may approve or reject. Bills requiring agencies to use cost-benefit analysis have been routinely proposed in Congress since 1995, cost-benefit analysis as a method by which the president, Congress, or the judiciary controls agency behavior, cost-benefit analysis requires a full accounting of the consequences of an action, in both quantitative and qualitative terms. Officials should have this accounting before them when they make decisions.