Food and Drug Administration (FDA)
The economists in the past strongly believed that the occupational groups of many kinds have been responsible for the occupational licensures. There were a number of studies that had been conducted in the past to find out how true all this was.
There were results that showed that the occupational groups show better income in those states that have proper regulations than in the case where there are no regulations. Those groups which were found to be regulated had the maximum opposition when it came to repealing the regulations.
There can be strong cases of nonprice regulations that can be made. But these would be made theoretically. It can be done for the environment, health, and safety related cases. But there is a doubt in this case. They do not know as to what extent it can actually live up as told in the theoretical potentials of those regulations.
The main reason for this is that there is no adequate data or proper data, with which the hypothesis can be tested. If the hypothesis is tested, then there are chances to find out the possible effects of these regulations.
It has been a long debated issue among the economists. They are not ready to take up these regulations as they have publicly stated goals that are desirable in nature. They say that the results would be good only if the incentives are given in a proper way for this case.
The best example would be the case of Food and Drug administration. In this case, the incentive won’t be an ideal thing to happen when there are new drugs that are being approved. There a number of tests that a drug has to undergo if it has come for the approval.
The whole procedure itself is a time consuming one. It can mean that there are no chances for unsafe drugs to enter the market. There was the time when there was the drug thalidomide that was into the markets of Europe, but the drug did not go pass the tests successfully in the US.
This was because it had undesirable effects on the infants when taken by the pregnant mother in the early stages of her pregnancy. The disadvantage with this is that there are many safe drugs also, that are being delayed in the whole process. If they could come into the market earlier, there would be more lives that can be saved.