The “new” view of investment decisions and public policy analysis: An application to green lights and cold refrigerators

Recent research in investment theory emphasizes the importance of sunk investment costs, uncertainty in returns, and flexibility in investment timing. Allowing for the presence of these characteristics alters traditional discounted cash flow rules for when to invest. Those rules will recommend investing at lower rate-of-retum thresholds than is optimal. This article describes this research and suggests the range of potential situations to which the theory applies. It also discusses the implications for policy analysis and suggests that government programs to encourage investment may, in some cases, be inappropriate. After discussing a wide array of possible applications, we focus on one in particular: programs to encourage energy-efficient investment. The examples suggest the importance of applying the new investment theory for economic analysis of investment in energy-efficient technologies.     

Lobbying: fantasy,reality or both? A health care public policy case study

This paper provides a theoretical explanation for lobbying as interpersonal rhetorical communication based on the tenets of symbolic convergence theory (SCT). SCT is a general theory of communication in the symbolic interactionism paradigm. Nowhere in the extant communication literature, including the scholarly public relations research, is lobbying explicated in this way. This paper utilises a health care public policy case study to illustrate SCT in lobbying practice. The emphasis here is on how lobbyists use homo narrans, or human storytelling, in influential face‐to‐face information exchange with public policy decision makers to be persuasive on behalf of their clients. The ultimate aim of this paper is to build the current body of theoretical and practical knowledge about lobbying, to advance more positive perceptions of lobbyists and lobbying and to improve the practice of lobbying in producing effective public policy outcomes. Copyright © 2001 Henry Stewart Publications     

Citizen participation and judgment in policy analysis: A case study of urban air quality policy

The emphasis currently placed on citizen participation in planning results in part from the recognition that planning requires judgments that have both value and technical components. This article describes a case study of a citizen participation process in which planners' judgments, rather than the judgments of the members of a citizens' task force, seemed to dictate the outcome. Although citizens were supposed to be influential in the policy analysis, they were, in effect, excluded from a meaningful role in the process. The analysis was actually guided by planners' supposedly technical judgments. Those judgments had important value implications, however, and those implications were not made clear to the citizens' task force. Examples are given of judgments made by planners at each stage of the analysis and the value components of those judgments are discussed. In each example, the judgments resulted in elimination of alternatives, selection of information, or integration of information. Two examples of methods of citizen participation which can increase the influence of citizens' judgments are also described.The National Center for Atmospheric Research is sponsored by the National Science Foundation.     

Flying high: A case study of Japanese industrial policy

Japan's policies with respect to industry promotion consist of much more than picking winners and subsidizing them to ensure their success. The highly flexible and adaptive character of Japan's policies is illustrated by the country's efforts to enter the world aerospace industry, an industry in which Japan is handicapped by the absence of a substantial domestic market. To meet the challenge, Japan has concentrated its efforts on altering the very structure of the world market in which it hopes to compete. Japan has participated systematically in international consortia, hoping to use such consortia as a conduit for acquiring access for foreign technology and foreign markets.     

Public Policy and Legitimacy: A historical policy analysis of the interplay of public policy and legitimacy

This article explores the interplay of local government policy and legitimacy from a broad postpositivist perspective where historical accounts and narratives are used in a complementary fashion. The basic assumption is that legitimacy is the product of satisfying felt needs and solving perceived problems. Health and social malaise problems and related policies of the past 120 years are analyzed in 50 Swedish municipalities. The analysis indicates that municipality policies respond to local problems only partly. Generally, local government policies responded dynamically to 'objective’ and perceived problems before the 1970s, but did not resolve the problems. Today’s legitimacy crisis could, to some extent, be explained by the discrepancy between high expectations created in the policy discourse and the central and local government’s incapacity to offer sustainable solutions to ongoing problems. It is suggested that if history is considered more seriously in public policy making it could help policy makers and citizens readjust expectations, illuminate the limits and prospects for public policy, and identify ways to restore legitimacy. Moreover, legitimacy could be restored if more realistic policies are worked out and if a new division of power between the levels of government is introduced.     

A case history of the application of social judgment theory to policy formulation

Social judgment theory provides (1) a theoretical framework for understanding the origin of policy quarrels and (2) methods for their resolution. Social judgment theory asserts that differences in policy are often cognitive in origin. Such cognitive differences are produced by the highly interdependent aspects of the more or less unreliable environments within which policies are made. Discussion alone is often insufficient for resolving policy differences because the covert, inconsistent nature of human judgment prevents individuals from accurately describing their cognitive processes. Consequently, judgmental aids, such as computer graphics technology and input-output analysis, are necessary in order to externalize and thus to clarify the causes of disagreement. Social judgment theory, computer graphics technology, and input-output analysis were successfully employed both in formulating an agency-wide policy as well as specifying how this policy would be implemented. Empirical support for the theoretical position was thus obtained.     

The mission of public policy programs: A report on recent experience

This is the report of a meeting on graduate training and research programs in public policy organized by the Ford Foundation on September 10, 1975. The meeting was attended by various representatives of the Ford Foundation along with the following representatives of public policy schools: Graham Allison, Professor, John F. Kennedy School of Government, Harvard University; William B. Cannon, Former Dean, Lyndon B. Johnson School of Public Affairs, University of Texas; John P. Crecine, Former Professor, Institute of Public Policy Studies, University of Michigan; Otto A. Davis, Dean, School of Urban and Public Affairs, Carnegie-Mellon University; Joel L. Fleishman, Director, Institute of Policy Sciences and Public Affairs, Duke University; Edward K. Hamilton, Professor, Program in Public Management, Graduate School of Business, Stanford University; Donald E. Stokes, Dean, Woodrow Wilson School of Public and International Affairs, Princeton University; Aaron Wildavsky, Dean, Graduate School of Public Policy, University of California (Berkeley); Charles Wolf, Jr., Head of Economics Department, and Director of Graduate Institute for Policy Studies, The Rand Corporation; Douglas T. Yates, Jr., Associate Dean, School of Organization and Management, Yale University.The author acted as the rapporteur of the meeting and offers the following account with the permission of those whose views and experience are directly represented. The author owes a special acknowledgement to Peter Bell of the Ford Foundation who made many useful comments on the original account and saved the author from numerous factual errors.     

Evolution of monetary policy approaches: A case study of Indian economy

The monetary policy framework of India has undergone several transformations reflecting underlying macroeconomic and financial conditions as also the dominant socio‐politico‐economic paradigm. The present study makes pertinent commentary notes on different monetary policy approaches, including, for instance, the era of development planning, the era of monetarism, the era of multiple indicator approach, and the era of inflation targeting in India along with their respective advantages and disadvantages.     

Multi-stakeholder public policy and governance in China: an analysis

In this article, public policy is put into a multi-stakeholder rather than adversarial perspective: we argue that there is a role for multi-stakeholder involvement in both the development and implementation of public policy; these are separate processes that can involve different patterns of stakeholder involvement (stakeholders have different skills and levels of interest in public policy) in either one or both the development and implementation phases. We need new models, approaches and examples of such multi-stakeholder public policy, and in this Special Issue, we focus on China, where such research is only slowly emerging. We present and analyse six papers that fall naturally into three categories: (1) corporate social responsiveness and societal relationships; (2) public affairs (particularly reputation management) and citizen involvement; and (3) public-management-oriented, data-based analyses. These articles, taken together, increase our understanding of multi-stakeholder research and practice, but equally as important, they give us insights into how Chinese public policy academics research and report public policy. This window into academic research and thinking offers us an opportunity to expand and deepen our understanding of public policy and its implications for public affairs in China. Copyright © 2014 John Wiley & Sons, Ltd.     

Corruption in public policy and its impact on development: The case of Uganda since 1979

This paper argues that corruption is a product of self-aggrandizement; of unrealistically low remuneration which makes it impossible for public servants to live within their legitimate means; and of a closed political system which inevitably tends to exclude aggregated interests'. Corruption leads to loss of much needed revenue and human talent for development, distorts priorities for public policy, and shifts scarce resources away from the public interest. The mutual distrust that results among the different sections of society, and the growth of despondency in the general public, are incompatible with the requirements for successful public policy. The main theme running through the paper is that political instability, corruption and underdevelopment are mutually reinforcing. The paper finally outlines certain measures that need to be taken in order to clear the path for sustained growth and development.     

Estimates and public policy: The politics of numbers

Abstract

Estimates of the number of homeless persons in the United States are frequently said to range from 250,000 to three million. In fact, the latter number is an invalid guesstimate that developed staying power for political reasons. National estimates of homeless persons based on explainable methodologies actually range from 230,000 to 736,000, with the most likely estimates around the half‐million mark. Despite the confrontational politics surrounding the numbers issue in the 1980s, a consensus is developing in the 1990s among private groups, including some major advocacy organizations, and all levels of government regarding policy direction in assistance programs for the homeless. There is widespread recognition that the goal should be to end homelessness, not simply to provide emergency assistance. Permanent housing solutions for special populations are needed in the context of renewed efforts to combat poverty.

In the public debate about the policy implications of divergent national estimates of the numbers of homeless persons, a common assumption is that the estimates vary widely and inexplicably—anywhere from a few hundred thousand to three million or more. Those who do try to explain the odd discrepancy between the extremes seem to assume that any count is politically motivated. They say that it depends on how one defines homelessness and who is counting. In other words, the implication is that numbers derive from policy and politics, rather than the other way around.

Given such perceptions, it is not surprising that some who have neither the time nor, perhaps, the resources to judge the accuracy of estimates begin to feel that the truth must be somewhere in between, as if a mathematical average were equivalent to a political compromise. Others will believe the message if they like the messenger. In a recent book on homelessness, for example, the author confesses that he trusts estimates “made by people who live where ‘the rubber meets the road’… rather more than the bright theorists tucked away in ivory towers.”¹ Although many statistics are politically controversial, it is probably safe to say that the debate on homelessness during the past decade represents the apogee of political numerology. It is worth reviewing just how this came to pass.