This paper analyzes the impact of bureaucratic decision costs on agency expertise. The analysis shows that the effect of the cost associated with adopting a new regulation (the enactment cost) on agency expertise depends on what the agency would do if it remains uninformed. If an uninformed...

This article analyzes the effect of the cost that an agency must incur to adopt a new regulation (the enactment cost ) on the agency's incentive to invest in expertise. The effect of the enactment cost on agency expertise depends on whether the agency would regulate if it fails to acquire...