Tuesday 24 November 2009

Judging the effects of government intervention

Efficiency of a policy:

  • What they are able/can do to streamline...

  • E.g. does it improve allocative, productive and dynamic efficiency


Effectiveness of a policy:

  • Which government policy is most likely to meet a specific economic or social objective?

  • Which policies are likely to have an impact in the short term when a quick response from consumers and producers is desired, and which policies are likely to prove most cost-effective in the longer term?


Equity effects of intervention:

  • Try to make the distribution of income more equal?
  • E.g. Does one group in the society gain more than other groups?


Sustainability of a policy:

  • Which sources of energy we choose to rely on in to future years

2 comments:

  1. Good - little by little you WILL get there!

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