Public policy economics: A survey of current pedagogical practice

This article reports on a survey of economics courses in our graduate program, identifies some of their weaknesses, and presents a number of suggestions for their improvement. The major theme that underlies my suggestions is to increase the active problem-solving roles for students in these courses, not leave the task exclusively to other courses. This can be facilitated by readings that emphasize the different processes of resource allocation, by limited use of case materials, and by development of interactive computer simulation models.     

The Greater Yellowstone policy debate: What is the policy problem?

Yellowstone National Park and the surrounding mountainous region comprise the Greater Yellowstone Ecosystem (GYE), a 19 million acre area that is one of the few relatively intact ecosystems in the lower 48 states. Conservationists believe that continuation of present land management practices in the region will disrupt the ecological integrity of the GYE. Many authors have identified and described these threats, but as yet there has been no sustained effort to make sense of these threats in the context of the ongoing dynamic policy debate. We develop the foundation for such understanding by examining the implicit problem definitions that have emerged from this debate. They fall into three general categories: 1) a scientific definition, 2) an economic definition, and 3) a bureaucratic definition. This process produces an exploratory definition of the policy problem, which suggests a strategy for better understanding and policy design. We propose several intervention points at which substantive, one-the-ground improvements in the management of the GYE are possible.     

Making policy for complex systems: A medical model for economics

In recent years, policy analysts have shown a growing interest in less rationalistic policymaking models. Medical knowledge may be useful to consider in this regard, since it combines practical knowledge with the findings of numerous analytic disciplines, and includes procedures for dealing with high uncertainty. In contrast, economic policymaking often applies analysis from a single discipline directly to a multifaceted problem. A broader “socioeconomic” approach emulating the medical model would incorporate variables such as political, social, cultural, psychic, and environmental factors.     

Case-wise policy analysis: Another look at the burden of high energy costs

Variable-wise analysis operates on columns of a typical data matrix, while case-wise analysis operates on rows. In the latter, each observation is construed in the context of all other observations on the same case, and the analysis is biased toward the definition of ideal types. This article explores the potential of case-wise policy analysis using survey data on the burden of high energy costs at the household level. The case-wise and variable-wise alternatives are associated with different policy goals and result in quite different priorities for allocating public assistance to households most in need. The article concludes with a discussion of reasons for institutionalizing the case-wise alternative through periodic data collection and reporting systems.     

Blind spots in the party system: Spatial voting and issue salience if voters face scarce choices

Drawing on spatial models of political competition, this research investigates whether decision weights vary across groups of voters defined by their policy positioning in a two-dimensional space. Our analyses of electoral survey data from England, France, Germany, the Netherlands and Switzerland reveal that the economic and cultural dimensions of electoral competition are salient for the vote choice of most groups of voters. However, those voters who hold economically right and culturally libertarian preferences weigh their preferences on the economic dimension more and discount parties’ position on cultural issues when no party represents their configuration of preferences. Consequently, left parties are less able to attain votes of economically right but culturally libertarian voters for cultural policy reasons, when electoral choices are scarce, while right parties are successful in attaining votes based on both dimensions. As a result, significant representation gaps can occur.     

Formula budgeting: The economics and analytics of fiscal policy under rules

The dramatic change in aggregate fiscal policy in recent years has contributed to a shift from process rules to allocation rules in federal budgeting. Although the allocation rules inherent in formula budgeting seem to offer fairness in times of fiscal constraint, they actually impose arbitrary program-level budgets that reflect the peculiarities of baselines, accounting conventions, and time horizons. Formula budgeting also changes the analytical environment, forcing policy analysts to pay greater attention to institutional arrangements.     

Postmodern policy analysis: Discourse and identity in welfare policy

Postmodern inquiry into the discursive construction of identity has the potential to make a distinctive, democratizing contribution to public policy analysis. More so than conventional approaches, a postmodern policy analysis offers the opportunity to interrogate assumptions about identity embedded in the analysis and making of public policy, thereby enabling us to rethink and resist questionable distinctions that privilege some identities at the expense of others. Public policy analysis can benefit from postmodernism's emphasis on how discourse constructs identity. A review of postmodernism and postmodern approaches to interrogating identity is followed by an exercise in postmodern policy analysis. Social welfare policy in contemporary postindustrial America is shown to participate in the construction and maintenance of identity in ways that affect not just the allocation of public benefits, but also economic opportunities outside of the state. Mired in old, invidious distinctions (e.g., independent/dependent, contract/charity, family/promiscuity), welfare policy discourse today helps to recreate the problems of yesterday, particularly as a critical factor in reproducing women's poverty.     

The Swiss energy policy elite: The actor constellation of a policy domain in transition

Abstract. In the actor–centered institutionalist approach of Fritz Scharpf (1997), 'actorconstellations' constitute the crucial link between substantive policy analysis and interactionoriented policy research. This paper presents an attempt to conceptualize the 'actor constellation' in a given policy domain and to analyze it empirically with network analysis. The empirical context is provided by the Swiss energy policy elite in the late 1990s— an example of a policy domain in transition between two policy equilibria. Based on interviews with 240 of the core actors in this policy elite, the results show a characteristic antagonism between a pro–ecology and a pro–growth coalition. On the national level, the two coalitions are of comparable size and power, which explains the current impasse in the policy domain in question. Moreover, in a federalist state like Switzerland, the energy policy elite is not concentrated at the center, but the basic antagonism is reproduced in each region nationwide. Confirming the consensus character of Swiss politics, the different components of the two antagonist coalitions not only cooperate within, but also across coalitions. These cooperative ties and the presence of honest brokers, policy enterpreneurs, and heterogeneous interests within eachm coalition provide opportunities for new alliances, which may lead out of the current impasse in the more or less near future.     

Understanding policy change through bricolage: The case of Chile's renewable energy policy

Chile is a country where path dependency made energy policy change extremely difficult by international standards. However, the country has recently become a renewable energy poster child thanks to a gradual process of policy change. How was this possible? This article contributes to discussions about policy change driven by ideas and to explaining the puzzling case of Chilean energy policy change. It does so by discussing the mechanism of bricolage—the recombination of old and new ideas by policy entrepreneurs—and its capacity to produce policy change in contexts of high path dependency. The article develops the political manifestations and consequences of bricolage and problematizes how actors continue to contest and change ideas' meaning after they have been institutionalized, a key question when analyzing processes of bricolage. The analysis is based on an array of data sources including interviews with key actors, newspaper notes, and legislative proceedings.     

Myths about tigers: Indonesian development policy debates

This paper assesses some of the major policy debates currently occurring in Indonesia. It is argued that, while Indonesia's economic performance over the past 30 years has been very good, some of these debates are centred on misleading or irrelevant 'myths' which may have adverse policy consequences. There is some evidence that the reform momentum has slowed in the past few years, while other pressing policy challenges have not been addressed with the vigour evident in the 1980s. Debate over these myths may therefore be contributing to a somewhat less coherent policy regime, just as the country is wrestling with post-Soeharto succession scenarios.     

The use and non-use of policy appraisal tools in public policy making: an analysis of three European countries and the European Union

The increasing complexity of policy problems, coupled with the political desire to base new policies on the foundation of firm evidence, has accelerated the development of policy assessment tools. These range from complex computer models and cost benefit analysis through simple checklists and decision trees. In the last decade, many governments have established formal policy assessment systems to harness these tools in order to facilitate more evidence-based policy making. These tools are potentially widely available, but to what extent are they used by policy makers and what becomes of the evidence that they generate? This paper addresses these questions by studying the empirical patterns of tool use across 37 cases in three European countries and the European Commission. It uses a simple classification of tools into advanced, formal and simple types. It finds that even when tools are embedded in policy assessment systems, their use is differentiated and on the whole very limited, in particular when it comes to more advanced tools. It then explores these patterns from contrasting theoretical perspectives to shed light on why, when and how different policy assessment tools are used in the policy process.     

Transitioning policy: co-production of a new strategic framework for energy innovation policy in the Netherlands

This article describes policy–science interactions in a transition process in which we were involved as scientists. We describe the interactions that occurred in a project for the fourth National Environmental Policy Plan in the Netherlands. The project was successful in that it produced a new concept and set of principles for policy to deal with persistent problems such as global climate change, which were used in the national policy plan. The new concept was that of transition and the principles were: policy integration, long-term thinking for short-term action, keeping multiple options open and learning-by-doing and doing-by-learning. Retrospectively, we ask ourselves: what factors facilitated the acceptance of the first ideas about transition management? Reconstructing the events and drawing on interviews with key individuals involved, we have tried to find the key factors for the adoption of the ideas developed in the project. Finally, we reflect upon our role as scientists-advisors and the role of others in the development of a new story line and set of principles for policy. Our own assessment, 8 years later, is that we were engaged in boundary work.     

Among the Energy Tribes: A cultural framework for the analysis and design of energy policy

My four years at the International Institute for Applied Systems Analysis (IIASA) have provided the opportunity for some participant observation among the Energy Tribes. The uncertainties that envelop trends in energy supply and demand are so wide that the exploratory mode (asking “What would you like the facts to be?”) turns out to be more rewarding than the adversary mode (asking “What are the facts?”). The three Energy Tribes are distinguished by their three contradictory scenarios: “Business as Usual,” “Middle of the Road” and “Radical Change Now.” Each scenario sets very different bounds on what is credible and incredible, possible and impossible, sensible and foolish, rational and irrational. More often than not, the name of any particular tribe turns out to mean simply “the people” in the language of that tribe. Each tribe, seeing itself as the repository of everything that is human, consigns all the others to a sort of unmenschionable limbo. That, in essence, is what has happened in energy policy analysis.