The Over-Regulated City: A Perspective on Regulatory Procedures in the City of New York

Abstract

This article summarizes the pilot studies of local regulation in the City of New York of a team of City University of New York students and faculty. It deals with three categories of regulation: permits and licenses, qualitative restrictions on buildings and land use, and price controls. Direct effects on revenue and revenue potential seem small, but the burdens of compliance and enforcement appear to be significant. While no striking evidence that regulation is responsible for the economic fortunes of New York is unearthed, it seems clear, in many cases, that regulation serves no significant purpose, and has stifled incentive and inhibited market-clearing at “correct” prices. Further study, directed in particular to why private interests seem more successful in promoting their demands for regulation in New York than elsewhere, seems warranted.