| Summary: | The paper analyses the effectiveness of law enforcement by regulatory agencies in Hungary. Empirical data were collected from such diverse felds as consumer rights protection, construc-tion, road safety, labor regulation, etc. The data were analyzed using a simplifed rational choice model, looking for evidence of whether adminis-trative practices were effective in preventing ra-tional actors from breaking the law. The analysis robustly proves the ineffectiveness of regulatory activity, as the breaking of laws may yield, in a conservative estimate, 10 to 100,000 times more income than the expected monetary value of the fne. In brief, the government of Hungary is gen-erally unable to enforce its own laws. Though the paper makes use of data solely from Hungary, it aims to provide a methodology for measuring regulatory capacity more generally.
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