The regulatory revolution is in high gear, according to a new book published by the American Enterprise Institute-Brookings Joint Center for Regulatory Studies. This sea change in regulatory reform is due in large part to a growing awareness of the costs of regulations.

"A deeper understanding of the economic and social impacts of regulation is fueling the regulatory revolution," says Robert W. Hahn, author of Reviving Regulatory Reform: A Global Perspective, Center director, and AEI resident scholar. "People are becoming more aware that regulations impose costs on individuals, even if those costs are hidden."

Hahn's exhaustive study of U.S. federal regulations enacted between 1981 and 1996 found that about half would not pass a benefit test. More rigorous governmental review of the potential impact of these new laws before they are enacted is essential. Counterproductive provisions, high price tags, and excessive paperwork must not define these laws.

In Reviving Regulatory Reform, the author proposes a twofold approach to reform: first, elected officials should be held accountable for the decisions they make in passing new rules, and second, thorough analyses of the potential economic impact of proposed regulations should be par for the course for rules that are designed to protect the public health and welfare.

As the revolution spreads, policymakers around the world are engaged in a thorough reexamination of regulations. In Mexico, for example, the government has launched a program to simplify its regulations and make it easier for small and midsize companies to do business.

Hahn's ultimate goal is to redesign the regulatory system in a way that ensures the public will actually benefit.