Forecasting the Effectiveness of Policy Implementation Strategies

Primarily, policies are intended to address economic, social and environmental problems. When implementing a policy, any government will be faced with the decision as to what strategy to adopt in order to meet the objectives set out by the policy in the most cost effective way. Several such Policy Implementation Strategies (PIS) may be available, making such a decision not so straightforward. With limited funds available, such a decision has particular importance for budgeting. This paper proposes forecasting PIS effectiveness as a decision support tool. The nature of Structured Analogies (SA) is considered suitable for generating such forecasts. A simpler version of SA, semi-structured analogies (S-SA), where experts do not need to recollect the exact outcome of analogies, is tested. Empirical findings suggest that in the hands of non-experts, the S-SA approach improves forecast accuracy when compared to unaided judgment. Accuracy improves further when forecasts are produced in groups.