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| Preface | |
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| Policy Analysis as a Profession and a Process: An Overview | |
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| The Process of Policy Analysis | |
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| Policy Analysis as Part of a Broader Profession: Expert Advice on Policy | |
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| Looking Ahead | |
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| Deciding How to Decide: "Experts," "The People," and "The Market" | |
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| The State of Nature: No Policies | |
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| Public Decisions Versus Collective Decisions | |
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| Summary | |
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| A Benchmark for Performance: The Market | |
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| Overview of Markets | |
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| Opportunity Costs and Scarcity | |
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| How Do Markets Work? | |
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| Looking Inside Market Processes | |
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| Summary | |
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| A Prison Camp Economy | |
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| "Evaluation and Market Failure": Criteria for Intervention | |
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| Tools for Evaluating Policy | |
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| The Rationale for Government Intervention: The Market Failures Perspective | |
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| Summary | |
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| Experts and "Advocacy": The Limits of Policy Analysis | |
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| Is Policy Analysis "Value Neutral"? | |
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| Alternatives to the Value-Neutral Focus on Market Efficiency | |
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| What Is the "Best" Alternative? | |
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| Summary | |
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| Democratic Decisions and "Government Failure": The Limits of Choice by the People | |
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| The General Problem of Decision | |
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| Institutions: The Choice of a Decision Rule | |
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| Alternative Decision Rules | |
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| Summary | |
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| A Place of One's Own | |
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| The Welfare Economics Paradigm | |
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| The Representation of Preferences | |
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| Individual Demand and Consumer Surplus | |
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| Market Demand | |
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| Cost, Marginal Cost, and Prices | |
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| Market Supply and Equilibrium | |
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| Public Goods and Externalities | |
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| Summary | |
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| Choice of Regulatory Form: Efficiency, Equity, or Politics | |
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| Markets versus Experts | |
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| Markets versus Politics | |
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| Experts versus Politics | |
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| Summary | |
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| Social Security Crisis? | |
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| Discounting I: Expected Values, Probability, and Risk | |
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| Risk Discounting Using Probability | |
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| Basic Concepts of Probability | |
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| The Logic and Language of Probability | |
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| General Rules of Probability | |
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| Risk Aversion | |
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| Decision Analysis | |
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| Summary | |
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| Discounting II: Time | |
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| Interest and the Rental Price of Money | |
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| Discount Rates: Getting Back from the Future | |
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| Net Present Value: Combining Future Costs and Benefits | |
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| The Internal Rate of Return and the "Public" Discount Rate | |
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| Summary | |
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| Cost-Benefit Analysis | |
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| Cost and Benefits Can Be Measured, and Added Up, in Dollars | |
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| Risks of Failure and Chances of Success Can Be Captured through Probability Discounting | |
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| Future and Present Values Can Be Measured Using Time Discounting | |
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| Cost-Benefit Analysis in Action | |
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| Summary | |
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| Conclusion | |
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| Review of the Policy Analysis Approach | |
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| Ideology as a Template for Policy Decision | |
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| Priming, Framing, and Attention: The Psychological Model | |
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| Final Remarks | |
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| References | |
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| Answers to Selected Problems and Questions | |
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| Index | |