Economics Question

Description

5-page issue brief on a policy that requires political attention

Don't use plagiarized sources. Get Your Custom Assignment on
Economics Question
From as Little as $13/Page

Unformatted Attachment Preview

1
This assignment will be submitted to Turnitin
Instructions
Identify a different problem or issue (local or state) that needs political attention through policy
action. Once you’ve identified the issue, you will be constructing an issue brief on the proposed
policy action. Your 5-page issue brief should be constructed using the attached template and
should cover the following sections:
Brief history of the issue
General accounting of the current problem (stated in one or two sentences)
The options available for addressing the problem
Whether there are current applicable policies that need to be expanded, adjusted or eliminated
What actors are currently involved with the issue and where support currently exists
What your recommendations are and how you would propose moving the policy forward (i.e.,
what support needs to be built, what channels does it need to go through, which of the options
listed above are most feasible, etc.)
Remember that any recommendations for new programs need to include how you will pay for
them in a sustainable manner.
Do not complete the template attached below with bullets or broad lists. This should be a detailed
analysis of each element discussed above. Write this issue brief as if you were handing it to the
state governor, the head of an agency, etc. They should understand your policy, your
recommendations, and the policymaking process of this issue through review of your issue brief.
It shouldn’t need elaboration from you.
2
Be sure to draw from our course readings and to use at least five (5) scholarly sources. A list of
good online journals is available in our online library.
Remember: You cannot use transportation policy or California’s cap and Trade program.
Issue Brief: Policy Topic Selected
Student Name
Professor
Course number – Course name
American Public University
DATE
Issue Brief on Policy Topic Selected
Background Information
Problem
Policy Options (including barriers, feasibility and current applicable policy)
Current and Potential Support and Opposition
Recommendations
References
1
PADM530 PUBLIC POLICY ALL WKS READING MATERIALS
WK1
Public Policy and Politics
Welcome to Week 1.
Public policy includes the specific actions government takes to rectify a public situation,
to establish goals and develop methods to accomplish them, to set guidelines and best-practices,
to communicate agency expectations and standards, etc. Our textbook authors discuss five public
policy contexts that affect public policy: social, economic, political, government and cultural.
For each policy action, there is one or more contexts at play for its creation, modification, or
rejection.
Introduction
Public Policy is broad term that describes an action or strategy that a governmental
organization takes to address a problem or perceived problem. The action or strategy can be
formed at the federal, state, or local level. Either public policy can be for the good of the citizens
as a group or it can be for benefitting some special interest group.
Created in haste, the results of public policy can be detrimental for many people and
often policy needs to be rescinded or changed. Policy may be set by law makers or by agencies.
The impacts or the results of a policy may not be what was intended. It is vital to examine any
policy from all perspectives, to examine the good and bad about the policy, to examine the longterm consequences as well as the short-term consequences, and to think about what unintended
consequences may result.
2
Policy Analysis
The analysis of policy either takes place before or after policy is completed. Analysis of
completed policy allows for the identification of alternative options, the consideration of all
consequences and individual perspectives prior to the best one selected.
Select each tab to learn more.
Framework for Policy AnalysisThree Approaches to Policy Analysis
One of the most accepted models for policy analysis is that set forth by Carl V. Patton and David
S. Sawicki, which has the following six steps (Patton and Sawicki 1986, p.26):
1. Verify, define, and detail the problem.
2. Establish evaluation criteria.
3. Identify alternative policies.
4. Evaluate these alternatives. Once alternative policies have been identified, they can be
evaluated by deciding the points in favor and against each one.
5. Select from alternative policies.
6. Monitor or evaluate progress. This step (especially in the flowchart below) suggests that
the policy has been implemented.
3
Official Policymakers
Many individuals and groups share power over policy, but the ones that come to mind for many
are the official policymakers, which includes elected and appointed government officials. A
system of checks and balances distributes the authority to make policy to prevent abuse of power
and guarantee individual liberties, and ideally, to avoid inefficiency, duplication, and unnecessary
expense.
The balance of power between the federal government and state governments has shifted over
time. The United States Constitution gave the federal government limited powers and
responsibilities, giving all powers not specifically named to the states and to the people.
4
Today, national defense, transportation, and interstate commerce, are generally the domain of the
federal government. Though state and local governments were generally in charge in areas such
as public education, and law enforcement, the federal government has found ways to use funding
to have larger roles in those areas that were not specifically listed in the Constitution for the
federal government.
Policy Actors and Conditions
All three branches of government are generally involved in the policy process. Additionally,
others may be policy actors.
Citizens
Americans have been involved in government since colonial times. While citizen participation
can be difficult to obtain on a regular basis, citizens do vote and often become involved for
special projects. While it is not a requirement for citizens to be involved, it is an option as they
are stakeholders in public policies.
Special interest groups
Special interest groups are often involved when they wish to influence policy. Citizens may
become part of a special interest group and act on behalf of the issues they support. These issues
may be good for the citizens as a whole or they may be good for only one group of people.
Examples of well-known special interest groups are National Association for the Advancement
of Colored People (NAACP) and the National Abortion Rights Action League (NARAL). Some
special interest groups hire former cabinet officials, military members and Congress members as
lobbyists as they already have knowledge about lawmaking and friends who are law makers.
5
Political parties
A political party’s first concern is maintaining power and controlling government; public policy
is a secondary concern.
Research institutes
Media
The media can greatly influence policy through the way it reports public attitudes and opinions.
Policymakers may also use the media to shape the public’s opinions and attitudes towards policy
issues. Media are generally biased.
Conditions Affecting Policy making
Some things to examine when analyzing policy are who benefits and who pays, if the policy is
politically feasible, who will support it, whether or not it is cost-efficient. What the public
opinion is, and what economic and conditions are. Remember: Most policy is a result of
compromise between various parties.
Influences on Policy Making
Public Opinion in Policy Making
Public opinion often influences policy. Those in Congress, the media, and groups supporting and
opposing policy will influence public opinion. This is most important for major policy items. In
most cases, however, the general public doesn’t pay attention to what Congress does on a daily
basis.
Influence of the Media and Internet on Policy Making
Internet and media outlets most certainly have the biggest influence in determining which issues
rise to national prominence. Younger Americans tend to use social media, much of which is
6
simply opinion based. There exists a strong relationship between media agenda vs. what citizens
and non-citizens believe the public agenda to be.
Examinations of the relationships among media coverage, public opinion and policy making
show strong correlations, with the correlation between the media and policy making being the
strongest.
Models of Public Policymaking
Many follow several models of policymaking with the most common included below. More than
one can apply.

Institutionalism, which sees public policy as an institutional (government) output.

Process, which sees policymaking as a political activity.

Group Theory, which sees policymaking as a struggle among special interest groups.

Elite theory, which sees policymaking as involving those who have the power
implementing their ideas whether or not those ideas are best for the entire country.

Rationalism, which sees policymaking as an effort by decision makers alone to make the
best choice for the largest number of people.

Incrementalism, which sees policymakers as continually making small changes to enact
what they want whether it is for the best of the whole or not.
Conclusion
Public policy and its creation is complex and requires policy makers and analysts to consider
many variables, including different points of view, long-term consequences, short-term
consequences, unintended consequences, who will pay, and what group will benefit as well as
what group will suffer.
7
Readings Chapter
1: Nature and History of International Law (Grant Text) Chapter
2: Sources of International Law (Grant Text) Chapter 3: International Law and Municipal Law
(Grant Text) They Bought a Caribbean Island to Start Their Own Country, Richard Collett, CNN,
March 10, 2022: https://www.cnn.com/travel/article/islandia-lets-buy-an-islandmicronation/index.html International
Law: https://www.law.cornell.edu/wex/international_law Uphold International Law:
https://www.un.org/en/our-work/uphold-international-law What is International Law?:
https://world101.cfr.org/how-world-works-and-sometimes-doesnt/globalgovernance/whatinternational-law A Guide To The Basics Of International Law:
https://www.law.georgetown.edu/wp-content/uploads/2019/08/AGuide-to-the-Basics-of-IntlLaw.pdf Abdul Hamid Kwarteng, Is International Law Really Law?, Asian Res. J. of Arts & Soc.
Sci., March 6, 2018 at 5(4): 1-9, available at
https://journalarjass.com/index.php/ARJASS/article/view/11384 Harlan Grant Cohen, Finding
International Law: Rethinking the Doctrine of Sources, 93 Iowa L. Rev. 65 (November, 2007),
available at https://advance-lexiscom.ezproxy2.apus.edu/api/document?collection=analyticalmaterials&id=urn:contentItem:4RFS
-X1K0-02BM-Y0VC-00000-00&context=1516831
References
Cogan, A., Sharpe, S., & Hertzberg, J. (1986). Citizen participation. The Practice of state and
regional planning. Chicago, IL: American Planning Association.
Parker, B. (2002). Planning Analysis: The Theory of Citizen Participation. University of Oregon.
Retrieved from http://pages.uoregon.edu/rgp/PPPM613/class10theory.htm.
8
Patton, C. V., & Sawicki, D.S. (1986). Basic Methods of Policy Analysis and Planning.
Englewood Cliffs, NJ: Prentice Hall.
Image Citations
“A flowchart the shows the six steps of the policy analysis framework: 1. Verify, define and
detail the problem, 2. Establish evaluation criteria, 3. Identify alternative policies, 4. Evaluate
alternative policies, 5. Display and distinguish among alternative policies, and 6. Monitor the
implemented policy.” by
http://pages.uoregon.edu/rgp/PPPM613/class10theory.htm.
“Washington DC Skyline with Washington Monument” by
https://commons.wikimedia.org/wiki/File:Washington_dc_skyline.jpg.
9
Welcome to Week 2.
Public Policymaking
Overview
This week we continue our exploration of public policy by looking at the theories of
politics and public policy. It is important to remember that theories are used to analyze. In this
case, they are used to analyze how public policy is made. Often, more than one theory will apply
to a policy decision. We are going to examine four of the more common theories.
Introduction
This week, we examine a few of the theories of public policy and politics. Remember that
we use theories to analyze how policy is made. More than one theory will often apply to a
decision. Some of the more common theories are:

Elite Theory

Group Theory

Institutional Theory

Rational choice Theory

Political System Theory
The Policy Process Defined
The International Journal of Policy Science opens in new windowhas some good information
about these.
As you study theory, remember a hypothesis is a best guess at the answer to a question with
an unknown answer. It is a tentative explanation or an educated guess. On the other hand,
10
a theory is a principle that explains phenomena that has already occurred and has been
proven. It is imperative to remember that they are not the same.
It is important to remember that theories are used to analyze. In this case, they are used to
analyze how public policy is made. Often, more than one theory will apply to a policy decision.
First, we will examine five of the more common theories and as we move on from theory to
practice. The policy process model will look at the various stages of the policy process, and the
roles and relationships of policy actors within each stage. This model is the logical sequence of
activities regarding any new public policy, and there are six basic stages of the public policy
process.
The Policy Process Model
As we examine policy process, we notice the policy process model examines the stages
and roles of the relationships in each state.
For the sake of simplicity, we will look at the procedure for federal law. Remember, this may be
somewhat different at the state and local levels.
The University of Texas at Austin opens in new window shows the public policy process as a
cycle with the most common steps included as:
1. Problem identification
2. Agenda setting
3. Policy making
4. Budgeting
5. Implementation
6. Education
11
While various sources have countless steps, with many use different names, most follow the
same outlined procedure above. You can begin anywhere in the cycle, but we will begin with the
identification of the problem. A policy problem exists because there is a need or a dissatisfaction
with the current state of affairs. People begin to look for alternatives and find a place on the
agenda so the issue can be presented. Once the issue is on the agenda, those who create policy
put the alternative they wish to implement before Congress and the alternative goes through the
process of becoming accepted.
A detailed description as to how Congress enacts law(s) in how laws are made is
designed to assist you learn about the legislative process. At the federal level, this process
requires congressional and presidential action as defined in Article 1, Section 7 of the U.S.
Constitution. While it has become more complicated with many more details the basic idea is
that it has to pass both houses of Congress before going to the President for a signature. If the
President vetoes the bill, it is returned to Congress. Congress can override that veto by passing
the bill again with a two-thirds majority, in which case the law becomes a law without the
President’s signature. The president might also take no action. After ten days (not including
Sundays), the bill becomes a law, but only if congress is still in session.
Complicated, sure! However, the process is not yet complete. Congress must further provide
appropriations prior to funds allocated on the new law. This brings issues of its own as the only
money Congress has to spend is money it collects in taxes and fees (generally paid by the
people) or borrows (which increases the debt).
This leads to implementation of the policy, in which the executive branch carries out the
new law. As the law begins to affect the people, Congress and the General Accounting Office
(GAO) evaluate what they have done. Outside entities, such as think tanks, the media, and
12
citizens also evaluate how the law has worked or not worked. In addition to examining the
intended effects of policy, these groups examine the unintended consequences. For example, in
one area, taxes might be raised so much that people who are working leave the area in greater
numbers than before. This could result in a net loss of tax income since there are fewer taxpayers
to pay the taxes.
References
Anyebe, A.A. (2018). An overview of approaches to the study of public policy. International
Journal of Political Science. 4(1) pp8-17 retrieved June 22, 2021,
from https://www.arcjournals.org/pdfs/ijps/v4-i1/2.pdf
Easton, D. (1965). A Systems Analysis of Political Life. New York: Wiley.
Foreign Assistance: Selected Agencies’ Monitoring and Evaluation Policies Generally Address
Leading Practices (Rep. No. GAO -16- 861R). (2016). Retrieved
from https://www.gao.gov/assets/690/680042.pdf
The University of Texas at Austin. (n.d.). The Public Policy Process. Retrieved
from http://www.laits.utexas.edu/gov310/PEP/policy/
Image Citations
“The United States Capitol” by
https://commons.wikimedia.org/wiki/File:Uscapitolindaylight.jpg.
“Flooding after Hurricane Harvey” by
https://commons.wikimedia.org/wiki/File:Support_during_Hurricane_Harvey_(TX)_(50).jpg.
13
“President Trump signing the Hurricane Harvey bill.” by
https://commons.wikimedia.org/wiki/File:President_Trump_signing_Hurricane_Harvey_bill_(cr
opped).jpg.
“Flooding from Hurricane Harvey” by
https://commons.wikimedia.org/wiki/File:Texas_Army_National_Guard_Hurricane_Harvey_Res
ponse.jpg.
Welcome to Week 3.
Policy Analysis
Overview
We start this week with an introduction to policy analysis. It is done primarily during the policy
formulation stage. Policy analysis is not supposed to determine policy decisions, but rather to
shape the discussion and alternatives. It is part science and part political judgment.
Introduction
This week, we will begin with an introduction to policy analysis. Policy can be done at any stage.
For this class, you will examine policies that have been in place long enough that there are
enough data available to help you do the analysis. Predictive analysis is more difficult, so using
policy that has been in place will help you determine how expected and unexpected
consequences as well as long-term and short-term consequences are a part of analysis.
Remember, you cannot use opinion to back opinion. If you don’t like a part of some policy, that
is fine. You have to be able to back that with concrete facts, not just what you think or feel.
14
Sometimes, you may like a policy due to your political stand but find there are more negatives
than positives or that it will harm a larger portion of the population than it helps. That is fine as
analysis is supposed to be fact-based rather than political opinion based.
Policy Analysis
Policy analysis must weigh evidence against opinion. This may make it difficult for those who
cannot separate the two. In addition to the numbers of citizens who are helped and harmed, it is
important to include other things, such as giving special thought to long-term consequences and
unintended consequences as well as short-term consequences.
Policy analysis requires the individual to identify options, compare options, examine everything
from multiple perspectives, and determine possible outcomes. Subject matter experts, citizens,
and economists can all help with the undertaking of concepts analyzation.
There are steps that must be taken to do this well.

Identify possible options. There are often more than just two. Don’t let yourself be
swayed by fallacies, such as false choice, straw man, red herring, and begging the
question (circular reasoning).

Describe each policy, including who will be affected (both positively and negatively) and
how they will be affected.

Examine the context.

Make sure you are examining like things if you decide to do comparisons.

Examine the costs and benefits to each group affected.
15

Determine which option is the best for the majority of the people. If your concern is not
for the majority, consider why not. Determine whether the majority of the population will
be harmed.
Policy analysis plays an important part in any of the steps of policy creation and implementation.
Well-done analysis guides the decision-making process, so the final result is a policy that is
effective and as efficient and fair as possible. It can also be used during the implementation
process to assist with a smoother and more efficient implementation. Policy analysis can help
policy makers find flaws so that the policy can be improved.
Chambers, (2000, p.71) recommended the careful detailing of goals and objectives, forms of
benefits or services delivered, eligibility rules, financing, and the structure for service delivery.
Steps in Policy Analysis
Step 1: Define and Analyze the Problem
Determine what the issue is and analyze it. Consider how it occurred and what its causes were.
Determine how important it is to the public as a whole and whether or not it is up to the
government to provide solutions or other actions to lessen the effects of the problem. Be sure you
have solid evidence about these things before presenting it. If the definition of the problem
becomes politicized, it is likely that each side will have studies to support its argument. Dueling
experts can be an issue.
Step 2: Construct Policy Alternatives
The next step is to construct policy alternatives. Think about realistic options. This could include
modifying a current policy or creating a different one. Consider modifications that might be
available, such as stronger enforcement or penalties.
16
Step 3: Develop Evaluative Criteria
In the third step, the analyst determines what course of action is most suitable when considering
fairness, efficiency, and effectiveness. Also think about what is most feasible and acceptable.
Examine the cost, the unintended consequences and the sustainability.
An example of the use of poor criteria occurred during the Dot-com boom and bust in California.
New technology had been building. New companies expanded. Online retailing became the place
for growth. People invested and stock values grew. During that time, California had a large
amount of tax money that hadn’t been allocated to specific programs. Instead of paying off debt
and creating a “rainy day” fund, the state instituted many new entitlement programs that relied
on the continued dot-com boom. When the dot-com bubble burst, the entitlement programs
continued but there was no longer the money to pay for them. This was a big issue with
sustainability.
For an example of some of those standards, see the General Accounting Office’s Report to
Congressional Committees on Program Evaluation(this link opens in a new window/tab) .
Step 4: Assess Policy Alternatives
Next you need to determine which alternative is the most likely to have the desired outcomes.
Use evidence to determine this rather than opinions about what you would like to see. The best
alternative may involve more compromise or trade-offs. Summarize the findings about the
merits of the proposals considered.
17
Dimensions for Policy Analysis
The criteria used to examine the effects of the implementation of the policy over a period of time
are called the durability of the policy analysis.

Effectiveness- This tells how well the policy does what it was created to do

Unintended consequences- This included outcomes that were not intended.

Fairness- In order to determine fairness, the analyst must consider who pays for the
policy, who benefits from the policy, and whether those who pay for the policy will
benefit from it in tangible ways.

Costs- This is measured in relation to the benefits provided. Someone must pay in some
way. If more money is spent in one area, less is available for others. Think about what
will be cut to pay for any increase. Benefits should always outweigh costs.

Feasibility- consider how possible the policy is from political, social, and economic
standpoints. If it is considered feasible, but provokes a public uproar when it is
implemented, the durability is questionable, and it may need considerable changes.

Acceptability- Acceptability is used to measure the support given by citizens.
A SWOT (Strengths, Weaknesses, Opportunities, and Threats), analysis can help you do this kind
of analysis. A SWOT analysis allows you to identify core items in each areas.
Economic approaches
Economic approaches may include a cost-effectiveness analysis, cost-benefit analysis, or risk
assessment.
Identifying all of the long-terms and short-term costs and benefits can take some time. The less
you depend on personal opinion and the more you use less subjective costs and benefits, the
18
better the analysis will be. Using a discount rate can allow you to determine future benefits and
costs; however, be sure not to make the discount rate a political issue.
Policy Analysis Players
There are many policy analysis players at all levels of government. some of the government
organizations that can be involved include the following:

The Congressional Research Service, which shares staff with congressional committees
and Congress.

The Government Accountability Office (GAO), which is an independent agency that
works for Congress. It investigates how the federal governments spend money.

Some special interest groups that lobby Congress.

Many government agencies such as the Food and Drug Administration (FDA) with
its Office of Planning, which assists the FDA in promoting and protecting public health.
Think Tank Studies
Think tanks generally claim to be nonpartisan, which means that they are not part of a
political party. However, these often have some kind of bias. It is always good to read a liberal or
progressive thing tank (such as Brookings Institute) article, a conservative think tank (such as the
Heritage Foundation) article, and a libertarian think tank (such as CATO Institute) article to get a
better idea of the different points of view.
Conclusion
When doing policy analysis, be sure to include all the basic steps, including defining the
problem, constructing alternatives, evaluating evaluative criteria, assessing alternatives, and
drawing conclusions.
19
Government agencies, special interest groups, and think tanks all do policy analysis.
While a well-analyzed policy can be long-lasting and effective, one that is created quickly and
without proper thought can result in great failures.
References
AIPAC America’s Pro-Israel Lobby. (2020). Issues. Retrieved
from https://www.aipac.org/learn/issues
Chambers, D. E. (2000). Social policy and social programs: A method for the practical public
policy analyst. Boston: Allyn & Bacon.
Centers for Disease Control. (2021). Policy Analysis Retrieved June 15,2021,
from https://www.cdc.gov/policy/polaris/policyprocess/policyanalysis/index.html.
Dobelstein, A. W. (2002). Social welfare: Policy and analysis. Pacific Grove, CA: Brooks/Cole.
Gilbert, N., & Terrell, P. (2002). Dimensions of social welfare policy. Boston: Allyn & Bacon.
Kraft, M. E., & Furlong, S.R. (2013). Public Policy: Politics, Analysis, and Alternatives. 4th
Edition. Los Angeles: Sage Publications.
Popple, P., & Leighninger, L. (2004). The policy-based profession: An introduction to social
welfare policy analysis for social workers. Boston: Allyn & Bacon.
Program Evaluation Strategies to Facilitate Agencies’ Use of Evaluation in Program
Management and Policy Making (Rep. No. GAO – 13 – 570). (2013). Report to Congressional
Committees June 2013 Retrieved from http://www.gao.gov/assets/660/655518.pdf
U.S. Center for Disease Control and Prevention. (n.d.) Policy Analysis. Retrieved June 23, 2021,
from https://www.cdc.gov/policy/polaris/policyprocess/policyanalysis/index.html
U.S. Food and Drug Administration. (July 18, 2019). Office of Planning. Retrieved
from https://www.fda.gov/aboutfda/centersoffices/oppla/planning/default.htm
20
U.S. Government Accountability Office (GAO). (July 18, 2019). Program Evaluation: Annual
Agency-Wide Plans Could Enhance Leadership Support for Program Evaluations. Retrieved
from https://www.gao.gov/products/GAO-17-743
U.S. Government Accountability Office (GAO). (2021). Retrieved from https://www.gao.gov/
U.S. Library of Congress. Congressional Research Service Careers. (2021).
from http://www.loc.gov/crsinfo/
Image Citations
“Calculations” by https://pixabay.com/en/calculator-calculation-insurance-1680905/.
Welcome to Week 4.
Policy Alternatives
Overview
Last week we began our deeper look into the policy analysis process through our
discussion on defining/analyzing the problem and constructing alternatives. This week we
consider the next step in the process: developing evaluative criteria. We will also identify some
of the laws and methods used in evaluation.
Introduction
Last week, we continued our examination of policy analysis through the construction of
alternatives. This week we will continue the process beginning with developing alternative
criteria.
21
Evaluative Criteria for Public Policy
Following problem identification and clarification, development of goals in order to explain what
the policy alternative(s) exist will be accomplished. It is usually broad with a long-term solution
or set of solutions. They must be specific and measurable. Think SMART goals (specific,
measurable, achievable, relevant, and time-based)
Specific criteria used to compare how well various alternatives meet goals are as follows:

Effectiveness – measures how well a policy achieves its goal;

Efficiency – measures the cost of a policy in relation to its expected benefits; and

Fairness- measures the level of fairness in the distribution of costs and benefits—that is,
who pays the costs and who reaps the benefits.
In addition to the criteria identified above, five additional criteria generally be employed in the
evaluation process are:

Ethics – measures how consistent the policy is with cultural norms;

Political feasibility- measures the level of acceptance of a proposed policy by elected
officials;

Social acceptability – measures the level of public acceptance and support of a proposed
policy;

Administrative feasibility- measures the ability to implement a proposed policy;

Technical feasibility- measures the availability and reliability of the technology needed to
implement a proposed policy.

Maintainability- measures how long the policy can be continued without additional
funding sources.
22
Pitfalls in Evaluating Criteria
Vague and general goal statements or goals that conflict can make criteria difficult to use. When
there is more than one alternative available, policymakers must decide the most important
consideration when choosing the best one. Having a specific and measurable goal statement
makes this easier to do.
There can be no ambiguity in the criteria and their measures. No matter who uses them, the
results should be the same. Appropriate measurement units need to be used for each criterion.
Criteria
Economic Criteria
Policy analysis usually includes economic criteria. This may include factors such as impact on
the economy, expected public revenue and spending. The most common economic criterion is
cost. This may include the costs of borrowing funds, costs to implement the policy, decreases in
net worth, and other costs that cannot be easily quantified as well as fixed costs, maintenance
costs, and opportunity costs.
If not all costs are identified and counted, accountability concerns may develop.

Marginal cost: Marginal cost is the cost of producing one more unit of something that is
already being produced.

Benefits: Benefits that can be directly ascribed to the policy alternative include things such
as interest that is accrued.
Fairness Criteria
When examining the fairness criteria, determine who pays for the policy (someone must always
pay) and who benefits from it. If those who pay for a policy do not benefit, it is not likely to be
23
fair. The most popular proposals have been “tax the rich” or tax “business” but this is not
necessarily the best solution.
Most people agree that discrimination based on arbitrary factors such as race, gender, disability
is wrong, and that all people need to be treated the same. Horizontal fairness tells us whether
burdens and benefits are distributed equally amongst societal groups. Vertical fairness concerns
whether the burdens and benefits are shifted among unequal groups. Intergenerational fairness
concerns whether burdens and benefits are being shifted from one generation for