The Challenge of Measuring Regulation

Measuring federal and state regulation presents significant challenges due to the inadequacy of traditional metrics, such as counting pages in the Federal Register. These crude measurements fail to adequately reflect the effectiveness or impact of regulations, as a short regulation can have a disproportionately large effect compared to lengthy, complex regulations. To address this issue, the development of a new index utilizing machine learning and natural language processing allows for a more nuanced analysis of regulatory content. This innovative approach counts specific prohibitions and obligations within regulations, leading to more accurate state rankings and insights about regulatory burdens.