Compared to private firms, government agencies are more likely to violate regulations and less likely to be punished

Recent events such as the Volkswagen emissions scandal have reminded us that the private sector often break government regulations. But what about government agencies? In new research, that examines compliance with the Clean Air Act and Safe Drinking Water Act, David M. Konisky and Manuel P. Teodoro find that, facing higher compliance costs, government agencies are more likely than private firms to violate such regulations. They also argue that these agencies are less likely to be penalized by government for their infractions compared to private firms.