Empirical Models and Policy Making: Interaction and Institutions

Empirical Models and Policy Making: Interaction and Institutions

Empirical Models and Policy Making: Interaction and Institutions

Empirical Models and Policy Making: Interaction and Institutions

Synopsis

This text analyses the assumption that when economic policy makers use economic models, there is a one way flow of information from the models to policy analysis.

Excerpt

It is generally assumed that, when economic policy makers use economic models, the information flow is only one way: outputs flow from the models into the policy analysis. Yet, in practice, the requirements and questions of policy makers play an important role in the development and revision of economic models. How does this interaction between modellers and policy makers work? This research question can most easily be understood by re-interpreting it as a series of more specific questions along the following lines. How does the interaction work? What factors does successful interaction depend upon? What problems does interaction cause? What roles do different professional groups play in the interaction? How do the institutional or contractual arrangements of modellers and policy makers affect the process? What are the trade-offs between models designed for a specific purpose and models held to answer several questions in a general policy field? Do the arguments of model exercises really contribute to a consensus on the policy measures or are they just used as an alibi? Do the policy makers try to ‘change’ the calculations from the models? How is the plausibility of the policy advice from the models judged? What strategies do the modellers follow to make their work relevant for policy makers? What insights can social scientists offer on the process of interaction between modellers and policy makers? Exploring such questions as these, and a desire to seek answers to them, provided the motivation for the research and analyses of this volume.

This two-way interaction between economic models and policy-making, between modellers and policy makers, is almost certainly widespread and recognized by those participating in empirical modelling for policy work, but has been subject to very little systematic research and analysis. There is a paucity of published material on the topic, no doubt because research into the interaction faces an obvious problem, namely one of evidence. There is both a lack of evidence in the public domain and the nature of the evidence needed to provide material for analysis is inherently non-systematic. Although we can recognize the importance of institutional arrangements and can categorize these, this only takes us so far. the interaction process is a human one of day-to-day contacts, as much as being one of documents, so that much of the exchange of information we seek to understand is tied up in experience and embedded in the tacit knowledge of the participants. This

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.