TP1 (Concepts and Frameworks)

Question 1

Pasteur’s Quadrant

Answer 1

Question 2

Political Ideologies: Involvement in the economy

Answer 2

Question 3

Political Ideologies: Foreign Involvement

Answer 3

Question 4

Political Ideologies: Involvement in society

Answer 4

Question 5

Policy Model types

Answer 5

Institutionalism
Rationalism
Incrementalism
Group
Elite
Public choice
Advocacy coalition
Punctuated equilibrium
Multiple streams
Stages

Question 6

Advocacy Coalition Framework

Answer 6

Question 7

Punctuated Equilibrium Theory

Answer 7

Question 8

Kingdon’s Many Streams Model

Answer 8

Question 9

The policy making process

Answer 9

Question 10

Instrument Typology

Answer 10

Regulatory
○ “Place an obligation on an entity”
○ Institutions which set out the rules of the game
○ There will always be some form of externality here, either direct or indirect
Economic and financial instruments
○ Positive incentives (Tax breaks, grants, loans, subsidies)
○ Negatives (Taxes, fees, charges, duties)
Soft Instruments
○ Provide recommendations through normative appeals and offer voluntary or contractual agreements (“Nudging”)

Question 11

3 Approaches for understanding policy instruments (Edler et al., 2016, p. 7)

Answer 11

-Classic approach: Top down, we ‘allegedly’ know what the issue is. Mechanistic.
-Instrument context approach: An instruments ability to solve an issue is dependant on the context in how its being used. Tortoise and hare paradox - (Hare being innovation, tortoise being legal system), we use softer policies to try and guide the hair from afar.
-Sociologic approach: Every policy instrument has values, looks at this underpinning value. (De-carbonisation etc)

Question 12

Key stages of policy development:

Answer 12

• Problem identification
  
  • Agenda setting
  • Policy formulation
  • Policy Legitimisation
  • Policy Implementation
    
    • Policy Evaluation

Question 13

Policy Argument Structure (1-7) - (Dunn, 2015)

Answer 13

1. Policy Claim (C) – A policy claim is the conclusion of a policy argument.
   Arguments also include other elements, including policy-relevant information (I), warrants (W), backing (B), qualifiers (Q), objectives (O), and rebuttals (R)
2. Policy-relevant Information (I) – Policy-relevant information provides the grounds for a policy claim.
   These grounds may be statistical data, experimental findings, expert testimony, common sense, or political judgements.
3. Warrant (W) – The warrant is a reason to support a claim. Warrants may be economic theories, ethical principles, political ideas, professional authority, and so forth.
4. Qualifier (Q) – the qualifier expresses the degree to which a claim is approximately true, given the strength of the information, warrants, and backings, as well as objects and rebuttals.
5. Backing (B) – The backing is an additional reason to support or “back up” the warrant.
6. Objection (O) – An objection opposes or challenges the information, warrant, backing, or qualifier by identifying special conditions or exceptions that reduce confidence in the truth of the information, warrant, backing, or qualifier.
   Rebuttal (R) – A rebuttal is an objection to an objection.

Question 14

Agenda setting and problem defining

Answer 14

• Problem definition is concerned with the organization of a set of facts, beliefs, and perceptions – how people think about circumstances.
  *Agenda setting refers to the process by which some problems come to public attention at given times and places’

Question 15

Extractive vs Inclusive institutions

Answer 15

Inclusive institutions:
Public involved in economic and political decision-making
Functioning democratic / pluralistic state guarantees rule of law.
Economic prosperity via incentive structures that reward talent and creative ideas.

Extractive institutions:
Small group control most political institutions and exploit wealth of those not in the elite and are unwilling to change.
Ruling elites are afraid ofcreative destruction -> Entrepreneurs and individuals have less incentive to invest and innovate.

Question 16

National innovation system

Answer 16

The national innovation systems approach stresses that the flows of technology and information among people, enterprises and institutions are key to the innovative process. Innovation and technology development are the result of a complex set of relationships among actors in the system, which includes enterprises, universities and government research institutes.

1) interactions among enterprises
2) interactions among enterprises, universities and public research institutes.
3) diffusion of knowledge and technology to enterprises, including industry adoption rates for new technologies and diffusion through machinery and equipment
4) personnel mobility

Question 17

Extractive vs Inclusive institutions (split) economic and political

Answer 17

Question 18

Triple Helix

Answer 18

A spiral model of innovation that captures multiple reciprocal relations at different points in the process of knowledge capitalization’
3 helices = university, industry, government
Trilateral relationship is supposed to be relatively equal yet interdependent
University displaces the military as a leading actor
1st dimension = internal transformation within each helix
2nd dimension = influence of one helix upon another
3rd dimension = creation of a new overlay of trilateral networks and organizations from the interaction among all three helices

Question 19

Knowledge Generation modes

Answer 19

Mode 1 production of knowledge– Hegemony of theoretical/experimental science– Autonomy of scientists and their institution: universities
Three trends claimed in the research environment
Steering of research priorities
Commercialisation of research (sources of funding, value of IP)
Accountability of research (assessment, managerialism)
“As a result of these and other trends, the research that is various described as ‘pure’ … is now a minority preoccupation – even in universities.”

Mode 2 production of knowledge characterised as
Generated within a context of application (environment in which scientific problems arise, methodologies developed, outcomes disseminated and uses defined)
Trans-disciplinary
Greater diversity of sites where knowledge is produced
Highly reflexive
Quality control distributed, peer review problematic
Argument over whether Mode 2 is a secondary phenomenon, dependent on Mode 1 or not

Question 20

Scott (2014) proposed three central pillars of institutionalism:

Answer 20

a) Regulative (legally sanctioned)
Our interaction with these institutions may be categorized to operate in two ways first as a protective instrument which is there to ensure safety; second, regulative institutions act as cornerstones of justice.
b) Normative (morally governed)
c) Cognitive (recognizable taken for granted behaviours)

Question 21

This section will provide and explore three types of innovation systems or levels: (1) National, (2) Regional, and (3) Sectoral.

Answer 21

National Innovation Systems – For policymakers, an understanding of the national innovation system, or (NIS), can help identify leverage points for enhancing innovative performance and overall competitiveness (Feige, 2015, p. 24).

2. Regional Innovation Systems – Regional innovation systems (RIS) are closely related to clusters.
   Clusters and Technology Parks – Many regions globally have made cluster policy a staple of their economic development strategies.
3. Sectoral Systems of Innovation – An additional innovation systems concept is that of sectoral systems of innovation.

a. Sectoral systems of innovation stress the nature, structure, organization, and dynamics of innovation and production at the sector level and,

b. focus primarily on firms, capabilities, and learning processes as the major drivers of innovation and growth,

while also emphasizing the role of other actors in the system, including individuals, users, universities, government, and financiers and the linkages among them (Feige, 2015, p. 24).

Question 22

When Should Government Intervene? Conventional Wisdom

Answer 22

Most economic arguments for government intervention are based on the idea that the marketplace cannot provide public goods or handle externalities.

Question 23

Natural Sources of Concentrated Industrial Structure

Answer 23

Superior efficiency
Network externalities
Scale effects
Learning effects

Question 24

Private Strategies to Create/Preserve Concentrated Industrial Structure

Answer 24

Horizontal Mergers
Vertical Integration
Predatory Pricing
Limit Pricing
Discriminatory Pricing
Tie Ins
Collusion
Interlocking Directorates
Price Discrimination
Predatory Pricing
Resale Price Maintenance
Withholding Patents
Abuse of Dominant Position
Tying Arrangements
State Aid or Subsidies
Territorial Restrictions

Question 25

Action to take to counter hostile business practices

Answer 25

Deconcentration (Baby Bells, Baby Bills)
Divestiture
Compulsory Licensing
Federal Incorporation of Firms
Regulatory Oversight (e.g., UK: CMA, FCA, Ofcom vs US: FTC, SEC, FCC,)
Judicial Oversight (e.g., AT&T)
Merger Pre-Approval (EU Clearance Letter, HSR form)
Private Lawsuits and Treble Damages

Question 26

Tradgedy of commons

Answer 26

Overuse, conflict and destruction of valuable natural resources likely when users act independently due to lack of collective action

Question 27

Effectiveness of coasean bargaining

Answer 27

Coasean bargaining: a negotiation process that can help solve externality issues when there are few people involved
Common pool resources (CPR)

Question 28

Cost internalisation

Answer 28

Cost internalization, or internalization of external costs, is a policy that aims to correct market imperfections and inefficient resource allocation. It involves incorporating the costs of externalities into the market decision-making process.

Question 29

How will producers fight for public policies?

Answer 29

Question 30

Policy analysis: Tradeoff matrix, how analysts contribute, instruments, and assessment criteria

Answer 30