Insights All posts by Fabiola Perales-Fernandez and Jorge Velazquez-Roa

Analysis of future impacts of regulatory proposals is a policy adopted by some countries to improve the quality of regulations prior to their enactment. To make this review efficient, countries have adopted the proportionality principle. The study presents the Mexican case of applying the proportionality rule under the concept of compliance costs, through a review of a random sample of regulatory impact analysis exemptions requested to CONAMER during 2010-2020. In the study we found that the maximum effectiveness of this approach was 71 percent in that period. We also found that the Mexican approach fails in two ways: the first, the application of the criteria of such concept, and the second, the (in)sufficiency of the concept of compliance costs to analyze all important impacts of regulation. We present some policy recommendations.