Regulation in the States. By Paul Teske. Washington, DC: Brookings Institution Press, 2004. 272p. $52.95 cloth, $22.95 paper.

Government regulation of economic activity is endemic to modern society; a vast array of everyday transactions are affected—and shaped—by rules and requirements imposed by governments. The intentions behind such regulations are typically assumed to be benign. Through regulation, governments can rectify problems caused by deceit, unaccounted costs, or unchecked power that would otherwise limit the scope and the effectiveness of markets. From a fiscal perspective, regulation is a relatively low-cost form of government activity. The budgets of regulatory agencies represent small items of government expenditure, compared with the budgets of agencies engaging in service provision or income redistribution. Because government regulation of economic activity is very often taken for granted and is of low salience to citizens, it is rarely the stuff of headline news. Among scholars, regulation has also tended to receive short shrift. Yet, as an area of public policy research, the study of government regulation deserves close scrutiny. At its best, research in this area can provide insights into the intersections of markets and governments, using the tools of positive political economy to good effect.