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Identifying Alternatives

Topics

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Finding alternatives

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Lesson drawing/Best practices research

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Diffusion of innovations

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Incentives and rational behavior

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Policy instruments & the tools of government

  

Readings

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Bardach: 71 - 95

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Patton & Sawicki: 227 - 256

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RES #4: Salamon, Lester M.. 2002. "The New Governance and the Tools of Public Action: An Introduction." in Lester M. Salamon (ed) The Tools of Government: A Guide to the New Governance. New York, NY: Oxford University Press.

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One of the problems with government intervention in the economy is that there are limits to what government can do and how it can do it.  Thus, it should surprise you to read articles pointing out the inefficiencies associated with government "stimulus" programs and job creation.  See this article from the Weekly Standard that presents a criticism of the recent stimulus bill from a conservative point of view (7/11).    However, ABC news and other news outlets have also reported the relatively high cost-per-job associated with different components of the stimulus bill (ABC 10/09).  The Cash for Clunkers program has received particular scrutiny (Download this series of articles critiquing the program - 10/09).

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Sometimes government chooses to deregulate activities.  See this article about some recent efforts to streamline government regulations (5/11).  

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Taxes on the supply or demand side are often used to influence behavior.  For example, there is a proposal for Dutch drivers to pay a tax based on their time on the road rather than charging a purchase tax and road tax (AP 11/09).  Locally, the Cape Fear Public Utility Authority has been criticized because it changed the rate structure to create incentives to use less water (Star News 6/09).  The Obama Administration floats a proposal to create a vehicle miles traveled tax (The Hill 5/11).  How might this influence driver behavior or the purchasing or automobiles? 

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Sometimes government chooses to subsidize the production or consumption of a particular product of service.  See this article from describing the widescale use of subsidies for clean energy in recent years (NY Times - 11/11/11).  Alternatively, see this article on how the government subsidizes flights at rural airports to provide service to rural areas (AP - 8/11).

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One of the problems of using policy instruments is that they can result in unintended consequences.  See this collection of articles describing some of the problems associated with using stimulus grants and loan guarantees to encourage the production and consumption of clean energy (11/11).  See this article on how subsidizing ethanol production is raising food prices (USA Today 2/11).   See this article on how auto dealerships are scamming Chevy Volt Tax Credits (NLPC 5/11).  This article describes how a tax designed to reduce energy is threatening research on how to produce green energy in the U.K. (Guardian 5/11).  What if tax policy is changed to reduce deductions that the "rich" take.  Many nonprofits worry about how it would impact donations to their organizations (AP 5/09).  What if cap and trade proposals actually reduced the stigma associated with polluting and actually led to increased pollution (Download article from the Christina Science Monitor - 7/08).

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See this article for an example of the adverse impacts of sugar price supports (10/11) while this article discusses how tariffs limit the importation of ethanol from Brazil, which raises costs for U.S. consumers (Desmoine Register 2008)

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An interesting information asymmetry in education is the lack of knowledge about the quality of individual teachers.  See this interesting article on the debate surrounding proposals to rate teachers (USA Today 9/10)

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Assuming that the Christmas Tree really had an image problem and that there is a legitimate rationale for government to promote the consumption of live trees over fake trees, does taxing the produce make much sense (Download articles from 11/9/11)?  Using the handout summarizing the general policy instruments, can you think of other alternatives to better accomplish the sale and consumption of live Christmas Trees over fake trees?  

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There are several notable aspects of the insurance problem that create rationales for government intervention.  That said, it is often controversial and can lead to unintended consequences.  See this interesting set of editorials debating catastrophic coverage due to storm events (USA Today 11/07).  It is also clear that the provisions of President Obama's Healthcare reform program are triggering rate increases for current policy holders (Download this article on the increases to the premiums for federal workers - Government Executive 10/10).

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See this interesting article from Parade magazine summarizing the new book Superfreakonomics (10/09)

 

Lecture Notes

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Download as an adobe acrobat file

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Handout - Summary of policy instruments available to government

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Figures - Alternatives

 

Web Resources

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To be added

 

Books of Possible Interest

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Rogers, Everett M.. 1995. Diffusion of Innovations. New York, NY: The Free Press. 

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Salamon, Lester M. (Ed). 1989. Beyond Privatization: The Tools of Government Action. Washington, DC: The Urban Institute Press.

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Rose, Richard. 1993. Lesson-Drawing in Public Policy: A Guide to Learning Across Time and Space. Chatham, NJ: Chatham House Publishers

 

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