Document Type

Working Paper

Publication Date

5-29-2020

SSRN Discipline

Organization Series; PSN Subject Matter eJournals; ARN Subject Matter eJournals; Legal Anthropology eJournals; LSN Subject Matter eJournals; ERPN Subject Matter eJournals; Tax Law & Policy eJournals; Financial Economics Network; Management Research Network; Economics Research Network; Legal Scholarship Network; Entrepreneurship Research & Policy Network; Law & Society eJournals; Law & Society: Public Law eJournals; Auditing, Litigation & Tax eJournals; AARN Subject Matter eJournals; Accounting Research Network; Political Science Network; Anthropology & Archaeology Research Network

Abstract

Institutional and political forces create strong inertial pressures that make the updating of legislation a difficult task As a result laws and regulations often stagnate leading to the continued existence of obsolete rules and policies that serve longforgotten purposes Recognizing the inertial power of past policies legislatures over the last few decades have increasingly relied on a perceived solution "” temporary legislation In theory this measure avoids inertia because it requires legislators to make a deliberate choice to extend itbrbrThis Article argues that temporary legislation is a doubleedged sword While some temporary laws ultimately expire many perpetuate through cycles of extension and reauthorization Close examination reveals that temporary legislation often results in its own inertial force leading to the unintended permanence of what is originally believed to be only a provisional measure Using a case study from a large public subsidy adopted as a localized fix to a temporary problem the Article demonstrates how the subsidy has inadvertently grown in scope and in size creating its own inertial force that made its repeal exceedingly difficult brbrPathdependence dynamics of temporary legislation affect not only presentday policies but also the ability of legislatures to resist status quo bias and bring about legal change The Article concludes with normative insights on ways to utilize flexible rulemaking whilst circumventing legislative inaction Careful design of expiring provisions that is aware of the inertial power of temporary legislation can effectively ensure that laws are kept or discarded given their merits not by force of history

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