REGULATION OF ASBESTOS THE MICROANA1YTICS OF GOVERNMENT FAILURE

This article analyzes the government's role in regulating asbestos‐related health hazards in the United States. The U.S. government has served as both promoter and regulator of the U.S. asbestos industry, and this article examines the extent to which—in both capacities—it has hindered rather than facilitated the information dissemination essential to voluntary assumption of asbestos related risks. In documenting the behavior of the major government actors, this paper investigates the political and economic forces that have shaped U.S. asbestos policy. It shows how the Congressional transition from promoter to regulator of the asbestos industry can be explained by the susceptibility of political processes to transaction‐cost augmentation by the bureaucracy.