Executive Branch Management and Presidential Unilateralism: Centralization and the Issuance of Executive Orders

Despite the useful simplifying assumptions of recent work on unilateral power, archival analysis shows the issuance of executive orders is a process rife with transaction costs as presidents bargain with the bureaucracy over formulating their scope and substance. As a result, presidents must create what Williamson (1985) called “governance structures” to minimize those costs, with the Office of Management and Budget's clearance process at its heart. As with legislative policy formulation, presidents assert more centralized control over executive orders (EO) production on items that affect large numbers of departments, on matters of executive reorganization, and on significant matters. Political contexts are trumped by managerial concerns. Orders dealing with implementation of recently passed statutes or other presidential “clerkship” functions tend to follow a far less centralized formulation process.