Module 5 Methods in Policy Analysis Flashcards
Topics 5.2 The Radical Methods
Criteria
certain standards by which to base (the) policy judgements or decisions
certain standards by which to base (the) policy judgements or decisions
Criteria
3 distinct Purposes of Criteria
- Choosing between objectives
- Choosing between courses of action
- Evaluating effectiveness of the courses of action followed
Complete & Useful Criteria for Broad Policy Decisions
- Economic Criteria
A. Cost-Benefit Analysis
B. Welfare Economics - Other Social Criteria
a. Freedom
b. Democracy or political equality
c. Subjective equality
d. Appropriate inclusion - Environmental and Ecological Criteria
- Public Interest as a Criteria
Primary economic problem of forest policy
how to allocate the existing resources among their different possible uses and consequently to the satisfaction of the various possible wants
how to allocate the existing resources among their different possible uses and consequently to the satisfaction of the various possible wants
Primary economic problem of forest policy
Economic criterion of Cost-Benefit Analysis
An activity should not be undertaken unless its total benefits will exceed its total costs
An activity should not be undertaken unless its total
benefits will exceed its total costs
Economic criterion of Cost-Benefit Analysis
1A. Cost-Benefit Analysis
External economics and external diseconomies
benefits or costs which affect people other than those who are immediately involved in the activity
benefits or costs which affect people other than those who are immediately involved in the activity
1A. Cost-Benefit Analysis
External economics and external diseconomies
1A. Cost-Benefit Analysis
May require inclusion of secondary benefits
additional values added by an activity over and above those of the products or services produced directly by it.
additional values added by an activity over and above those of the products or services produced directly by it.
1A. Cost-Benefit Analysis
May require inclusion of secondary benefits
1A. Cost-Benefit Analysis
Difficulty in measurement
conversion to some units – measuring the unquantifiable
Can be used not only to decide whether a policy is economically justified, but also in choosing between alternative policies.
1A. Cost-Benefit Analysis
Criterion of 1A. Cost-Benefit Analysis
to achieve maximum net benefit – the greatest possible difference between total benefits and total costs
to achieve maximum net benefit – the greatest possible difference between total benefits and total costs
Criterion of 1A. Cost-Benefit Analysis
B. Welfare Economics (4)
- To find the arrangement of the economic universe that is best in terms of the welfare of the members of the society
- Tools used in welfare economics include cost benefit analysis, social welfare functions, and distributional analysis.
- Tools are used to evaluate policies and programs, such as taxes, subsidies, and regulations, to determine their impact on social welfare.
- Two standards of efficient production:
4A. Achievement of the greatest possible output with given means or achievement of a given output with the smallest means.
4B. Conformity to the community’s wishes – if all production will be efficient, the economy will be on optimum state
Criterion of Welfare Economics
when proposed change will make at least one person better off but will not make any one worse off. Change will increase total welfare.
Which Criterion:
when proposed change will make at least one person better off but will not make any one worse off. Change will increase total welfare.
Welfare Economics
Conclusion of Economic Criteria
While economic criteria cannot provide a perfect measuring stick which can always be used to determine accurately, and almost mechanically, whether a particular policy is desirable or not, they can provide relevant information in the clear and complete form, which will be most useful in the process of forming policies.
- Other Social Criteria (3)
- Economic criteria – assumes that it is better to have more rather than less goods and services.
- Is the policy that will lead to the greatest value of forest products always the most desirable ones?
- Other criteria as proposed by Dahl:
- Other Social Criteria
Other criteria as proposed by Dahl (4)
- Freedom
- Democracy or political equality
- Subjective equality
- Appropriate inclusion
Freedom
absence of obstacles to the realization of desire.
More freedom is to be preferred than less
absence of obstacles to the realization of desire.
More freedom is to be preferred than less
Freedom