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Cost-Benefit Analysis Key to Successful Rulemaking, TPI Says

FCC Chairman Ajit Pai’s proposal for an Office of Economics and Data (see 1704050047) should lead to better regulation, especially if it means more cost-benefit analysis (CBA) of pending regulations, said Caroline Cecot, affiliate faculty member at George Mason University…

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Law School, in a Technology Policy Institute blog post. Borrowing language from President Donald Trump, she said the push could "make economics at the FCC great again.” The proposed office would, “among other things, prepare CBAs to help the Commission determine whether the benefits of a given proposal are expected to outweigh its costs and consider how the costs and benefits of the proposal will be distributed among different segments of society,” Cecot wrote. “Once controversial, CBA -- or at least some form of CBA -- is now almost synonymous with sound policy.” Meanwhile, the Free State Foundation said in a new paper that regulation from the FCC led to less investment. “Telecommunications, a sector that should be leading the way in innovation, continues to be too heavily regulated,” said the paper by Senior Fellow Theodore Bolema. “While some eras are characterized by great regulatory accumulation and others by little or no accumulation, the direction, especially in the last several years of the [Tom] Wheeler Commission, has been continuously toward imposing more regulatory burdens.”