A Tale of Repetition: Lessons from Florida Restaurant Inspections / Ginger Zhe Jin, Jungmin Lee.

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Jin, Ginger Zhe

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Material type: Text

TextSeries: Working Paper Series (National Bureau of Economic Research) ; no. w20596.Publication details: Cambridge, Mass. National Bureau of Economic Research 2014.Description: 1 online resource: illustrations (black and white)Subject(s):

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Abstract: This paper examines the role of repetition in government regulation using Florida restaurant inspection data from 2003 to 2010. In the raw data, inspectors new to inspected restaurants tend to report 27% more violations than repeat inspectors. After ruling out regulatory capture and endogenous inspector rotation as potential explanations, we find that the new-repeat gap is best explained by the following two effects: first, restaurants target compliance in response to heterogenous stringency and tastes of different inspectors; second, inspectors pay greater attention in their first visit than in subsequent visits. After controlling for heterogenous inspector criteria, we find that a new inspector reports 13-18% more violations than the second visit of the previous inspector, likely due to a higher level of attention. Counterfactual simulations highlight the importance of inspector training and rotation in regulatory outcomes.

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Item type	Home library	Collection	Call number	Status	Date due	Barcode	Item holds
Working Paper	Biblioteca Digital	Colección NBER	nber w20596 (Browse shelf(Opens below))	Not For Loan

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October 2014.

This paper examines the role of repetition in government regulation using Florida restaurant inspection data from 2003 to 2010. In the raw data, inspectors new to inspected restaurants tend to report 27% more violations than repeat inspectors. After ruling out regulatory capture and endogenous inspector rotation as potential explanations, we find that the new-repeat gap is best explained by the following two effects: first, restaurants target compliance in response to heterogenous stringency and tastes of different inspectors; second, inspectors pay greater attention in their first visit than in subsequent visits. After controlling for heterogenous inspector criteria, we find that a new inspector reports 13-18% more violations than the second visit of the previous inspector, likely due to a higher level of attention. Counterfactual simulations highlight the importance of inspector training and rotation in regulatory outcomes.