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Moe: Control and feedback in economic regulation

Disclaimer. Don't rely on these old notes in lieu of reading the literature, but they can jog your memory. As a grad student long ago, my peers and I collaborated to write and exchange summaries of political science research. I posted them to a wiki-style website. "Wikisum" is now dead but archived here. I cannot vouch for these notes' accuracy, nor can I say who wrote them.

Moe. 1985. Control and feedback in economic regulation: The case of the NLRB. APSR 79: 1094-1116.


Bureaucracies are influenced by a variety of forces. Models that focus only on one-way, diadic relationships (e.g. Congress and the bureaucracy) in the name of parsimony do so at the cost of great losses in accuracy. In fact, several forces affect bureaucratic behavior. Moe proves his point through a statistical analysis of voting at the National Labor Relations Board. All the factors below matter.

Two-tiered hierarchy:


The NLRB makes rulings for/against complaints submitted by either labor or business. Step 1: A complaint is filed. Step 2: NLRB staff decide whether the complaint has enough merit to get a vote. Step 3: The five NLRB directors vote on the complaint. These three steps all affect one another. Step 1 is influenced by the expected outcome of Step 3 (does the current board favor labor or business?). Step 2 is influenced by both Step 1 and by the staff's expectations about what will happen in Step 3 (staff will forward more labor complaints to the board if the board is more pro-labor). And Step 3 is affected by what happens at Step 1 and Step 2. So Steps 1, 2, and 3 are all endogenous factors.


The president can affect the NLRB, primarily through his appointment, but also through executive orders and other mechanisms (table 3). The Congress can affect the NLRB through committee hearings, publicitiy, and other mechanisms. And the courts can overrule the NLRB, deterring it from deviant decisions.


Unemployment, inflation, and unionization can affect whether labor or business is more likely to submit more claims (table 5). They also affect whether NLRB staff favors labor over business (table 4).


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Moe, Terry (author)American PoliticsBureaucracyDelegation and Discretion

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