- Preface
- Introduction
- Rumsfeld and the Limits to Knowledge
- Using Policy Analysis to Inform Decisions
- Organization of the Book
- I. Policy Analysis
- 1. Policy Analysis with Incredible Certitude
- 1.1 The Logic and Credibility of Policy Analysis
- 1.2 Incentives for Certitude
- Support for Certitude in Philosophy of Science
- 1.3 Conventional Certitudes
- CBO Scoring of Pending Legislation
- Scoring the Patient Protection and Affordable Care Act of 2010
- Credible Interval Scoring
- Can Congress Cope with Uncertainty?
- British Norms
- CBO Scoring of Pending Legislation
- 1.4 Dueling Certitudes
- The RAND and IDA Reports on Illegal Drug Policy
- The National Research Council Assessment
- The RAND and IDA Reports on Illegal Drug Policy
- 1.5 Conflating Science and Advocacy
- Friedman and Educational Vouchers
- 1.6 Wishful Extrapolation
- Selective Incapacitation
- Extrapolation from Randomized Experiments: The FDA Drug Approval Process
- The Study Population and the Population of Interest
- The Experimental Treatments and the Treatments of Interest
- The Outcomes Measured in Experiments and the Outcomes of Interest
- The FDA and Conventional Certitude
- Campbell and the Primacy of Internal Validity
- 1.7 Illogical Certitude
- Heritability
- What Does “More Important“ Mean?
- Heritability and Social Policy
- Gene Measurement
- Heritability
- 1.8 Media Overreach
- “The Case for $320,000 Kindergarten Teachers“
- Peer Review and Credible Reporting
- 2. Predicting Policy Outcomes
- 2.1 Deterrence and the Death Penalty
- Estimates Using Data on Homicide Rates across States and Years
- 2.2 Analysis of Treatment Response
- Statistical Inference and Identification
- 2.3 Predicting Outcomes under Policies That Mandate a Treatment
- Sentencing and Recidivism
- Background
- Our Analysis
- Analysis Assuming Individualistic Treatment Response
- Numerical Findings
- Choosing a Policy
- Sentencing and Recidivism
- 2.4 Identical Treatment Units
- Before-and-After Studies
- Difference-in-Differences Studies
- Employment in Fast-Food Restaurants and the Minimum Wage
- 2.5 Identical Treatment Groups
- Experiments with Random Assignment of Treatments
- The “Gold Standard“
- 2.6 Randomized Experiments in Practice
- Extrapolation
- Compliance
- The Illinois Unemployment Insurance Experiment
- Random Compliance
- Intention-to-Treat
- The Mixing Problem
- Extrapolation from the Perry Preschool Project
- Social Interactions
- Local and Global Interactions
- Credible Analysis of Experimental Data
- 2.7 Random Treatment Choice in Observational Studies
- Rational Treatment Choice and Selection Bias
- Outcome Optimization with Perfect Foresight
- Regression Discontinuity Analysis
- Rational Treatment Choice and Selection Bias
- 2.8 Modeling Rational Treatment Choice
- Outcome Optimization as a Model of Sentencing
- Distributional Assumptions
- 2.1 Deterrence and the Death Penalty
- 3. Predicting Behavior
- 3.1 Income Taxation and Labor Supply
- The Theory of Labor Supply
- Empirical Analysis
- Basic Revealed-Preference Analysis
- Illustration: Labor Supply under Progressive and Proportional Taxes
- 3.2 Discrete Choice Analysis
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- Random Utility Model Representation of Behavior
- Attribute Representation of Alternatives and Decision Makers
- Analysis with Incomplete Attribute Data
- Practicality
- College Choice in America
- Predicting the Enrollment Effects of Student Aid Policy
- Power and Price of the Analysis
- Discrete Choice Analysis Today
-
- 3.3 Predicting Behavior under Uncertainty
- How Do Youth Infer the Returns to Schooling?
- How Do Potential Criminals Perceive Sanctions Regimes?
- Measuring Expectations
- Pill, Patch, or Shot?
- 3.4 Perspectives on Rational Choice
- As-If Rationality
- Bounded Rationality
- Biases and Heuristics
- Widespread Irrationality or Occasional Cognitive Illusions?
- The Common Thread Is Certitude
- 3.1 Income Taxation and Labor Supply
- 1. Policy Analysis with Incredible Certitude
- II. Policy Decisions
- 4. Planning with Partial Knowledge
- 4.1 Treating X-Pox
- 4.2 Elements of Decision Theory
- States of Nature
- The Welfare Function
- Welfare Functions in Studies of Optimal Income Taxation
- The Mirrlees Study
- 4.3 Decision Criteria
- Elimination of Dominated Actions
- Weighting States and the Expected Welfare Criterion
- Criteria for Decision Making under Ambiguity
- Maximin
- Minimax Regret
- Using Different Criteria to Treat X-Pox
- 4.4 Search Profiling with Partial Knowledge of Deterrence
- 4.5 Vaccination with Partial Knowledge of Effectiveness
- Background
- Internal and External Effectiveness
- The Planning Problem
- Partial Knowledge of External Effectiveness
- Choosing a Vaccination Rate
- 4.6 Rational and Reasonable Decision Making
- The Savage Argument for Consistency
- Axiomatic Rationality and Actualist Rationality
- Axiomatic and Actualist Perspectives on Subjective Probability
- Ellsberg on Ambiguity
- The Quest for Rationality and the Search for Certitude
- 5. Diversified Treatment Choice
-
- Diversification and Profiling
- 5.1 Allocating a Population to Two Treatments
- The Welfare Function
- A Status Quo Treatment and an Innovation
- Expected Welfare
- Maximin
- Minimax Regret
- Choosing Sentences for Convicted Juvenile Offenders
- Allocation of Wealth to a Safe and Risky Investment
- Risk-Averse Planning
- 5.2 Diversification and Equal Treatment of Equals
- Ex Ante and Ex Post Equal Treatment
- Combining Consequentialism and Deontological Ethics
- 5.3 Adaptive Diversification
- Adaptive Minimax Regret
- Implementation in Centralized Health Care Systems
- The AMR Criterion and the Practice of Randomized Clinical Trials
- Fraction of the Population Receiving the Innovation
- Group Subject to Randomization
- Measurement of Outcomes
- Adaptive Minimax Regret
- 5.4 Diversification across Time or Space
- Diversification by Cohort
- Laboratories of Democracy
- 5.5 Adaptive Partial Drug Approval
- The Present Approval Process
- Binary versus Partial Approval
- Adaptive Partial Licensing
- 5.6 Collective Decision Processes
- Majority-Rule Voting with Single-Peaked Preferences
- The Credibility of Single-Peaked Preferences
- Strategic Interactions
- Learning and Heterogeneity of Policy Preferences
- Bilateral Negotiations
- Pareto Optimal Allocations
- Incentive-Compatible Processes
- Teacher Evaluation in New York City
- Majority-Rule Voting with Single-Peaked Preferences
- 5.7 Laissez-Faire
- Social Learning from Private Experiences
- Laissez-Faire Learning and Adaptive Diversification
- Social Learning from Private Experiences
-
- 6. Policy Analysis and Decisions
-
- Institutional Separation of Analysis and Decisions
- Doing Better
-
- 4. Planning with Partial Knowledge
- Appendix A: Derivations for Criteria to Treat X-Pox
- Appendix B: The Minimax-Regret Allocation to a Status Quo Treatment and an Innovation
- Appendix C: Treatment Choice with Partial Knowledge of Response to Both Treatments
- References
- Index


Public Policy in an Uncertain World
Analysis and Decisions
Product Details
HARDCOVER
$48.00 • £38.95 • €43.00
ISBN 9780674066892
Publication Date: 02/18/2013
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