What a Difference a Grade Makes: Evidence from New York City's Restaurant Grading Policy

• 成果类型: Article
• 署名作者: Rothbart, Michah W.; Schwartz, Amy Ellen; Calabrese, Thad D.; Papper, Zachary; Mijanovich, Todor; Meltzer, Rachel; Silver, Diana
• 署名单位: Syracuse University; Syracuse University; Syracuse University; New York University; The New School; The New School; New York University
• 刊物名称: PUBLIC ADMINISTRATION REVIEW
• ISSN/ISSBN: 0033-3352
• DOI: 10.1111/puar.13091
• 发表日期: 2019
• 页码: 651-665
• 关键词: quality disclosure; ACCOUNTABILITY; INFORMATION; IMPACT

摘要

Can governments use grades to induce businesses to improve their compliance with regulations? Does public disclosure of compliance with food safety regulations matter for restaurants? Ultimately, this depends on whether grades matter for the bottom line. Based on 28 months of data on more than 15,000 restaurants in New York City, this article explores the impact of public restaurant grades on economic activity and public resources using rigorous panel data methods, including fixed-effects models with controls for underlying food safety compliance. Results show that A grades reduce the probability of restaurant closure and increase revenues while increasing sales taxes remitted and decreasing fines relative to B grades. Conversely, C grades increase the probability of restaurant closure and decrease revenues while decreasing sales taxes remitted relative to B grades. These findings suggest that policy makers can incorporate public information into regulations to more strongly incentivize compliance.