Economics 731: Applied Policy Methods
Al Link
Tuesday / Thursday, 11:00-12:15
Spring 2015
Objectives and Description of the Course
The objectives of this course are:
• To introduce the subject matter that falls under the rubric of applied policy
methods, and
• To illustrate applied policy methods through readings, class presentations, and
class discussions that focus on program evaluation
I have assigned readings that cover a wide range of topics in an effort to meet what I
expect are the diverse interests of the class. My prior in choosing these readings is that
each student is more likely to be a consumer rather than a producer of policy analyses.
Thus, my goal is to emphasize that, regardless of the subject matter, one should analyze
policies on the grounds of basic principles—economic principles in particular.
The applied policy method that we will study this semester is what is called “program
evaluation.” I have selected that focus for two reasons: one, it is grounded in economic
concepts, and two, it is heavily emphasized in today’s political environment.
As an introduction, I have written a Primer for this class on the theory and practice of
program evaluation.
Grading
Final course grade is subjective, and it will be based on:
• Class discussions
• Class presentations and assignments
• Writing assignments
Contact Information
Office:
Email:
Bryan 461
anlink@uncg.edu (best way to reach me); please put Eco 731 in subject line
Readings
The readings are posted on CANVAS <http://courses.uncg.edu/log-in/>. Please look
under Files. Those readings noted by * are for your personal reference.
Link, Albert N. (2015). “The Theory and Practice of Program Evaluation: Primer
for Economics 731,” mimeograph.
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* Constitution of the United States (1776).
* Hufschmidt, Marynard M. (undated). “Benefit-Cost Analysis: 1933-1985,”
mimeograph.
* Office of Management and Budget (OMB) (1992). Circular No. A–94:
Guidelines and Discount Rates for Benefit–Cost Analysis of Federal
Programs, Washington, D.C: Government Printing Office.
* OMB Circular A-4. 2003.
* “Government Performance and Results Act of 1993,” P.L. 103-62.
Lawrence, Sarah and Daniel P. Mears (2004). “Benefit-Cost Analysis of
Supermax Prisons,” Urban Institute.
Government Accounting Office (GAO) (2012). “Designing Evaluations.”
Mansfield, Edwin et al. (1977). “Social and Private Rates of Return from
Industrial Innovations,” Quarterly Journal of Economics, 91: 221-240.
Feller, Irwin and Jon P. Nelson (1999). “The Microeconomics of Manufacturing
Modernization Programs,” Research Policy, 28: 807-818.
Council of Economic Advisers (2011). “The Economic Impact of the American
Recovery and Reinvestment Act of 2009.”
Frank, Robert H. (2000). “Why Is Cost-Benefit Analysis So Controversial?”
Journal of Legal Studies, 29: 913-930.
Kats, Gregory. (2003). “The Costs and Financial Benefits of Green Buildings,”
Capital E Report.
Link, Albert N. and John T. Scott (2012). “On the Social Value of Quality: An
Economic Evaluation of the Baldrige Performance Excellence Program”
Science and Public Policy, 39: 680–689
Muller, Andreas (1980). “Evaluation of the Costs and Benefits of Motorcycle
Helmet Laws,” American Journal of Public Health, 70: 586-592.
Miller, Ted R. et al. (1998). “Costs and Benefits of a Community Sobriety
Checkpoint Program,” Journal of Studies on Alcohol, 462-468.
Wang, Samuel J. (2003). “A Cost-Benefit Analysis of Electronic Medical
Records in Primary Care,” The American Journal of Medicine, 114: 397-403.
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Food and Drug Administration (FDA) (2005). “Food Labeling; Gluten-Free
Labeling of Foods,” mimeograph.
PEW-MacArthur (2013). “States’ Use of Cost-Benefit Analysis.”
Weisbrod, Burton A. (1981). “Benefit-Cost Analysis of a Controlled Experiment:
Treating the Mentally Ill,” Journal of Human Resources, XVI: 523-548.
French, Michael T. et al. (2002). “Benefit-Cost Analysis of a Modified
Therapeutic Community for Mentally Ill Chemical Abusers,” Evaluation and
Program Planning, 25: 137-148.
Jacobson, John W. et al. (1998). “Cost-Benefit Estimates for Early Intensive
Behavioral Intervention for Young Children with Autism: General Model and
Single State Case,” Behavioral Interventions, 12: 201-226.
Battelle (2011). “Economic Impact of the Human Genome Project.”
City of Portland (2008). “Cost Benefit Evaluation Of Ecoroofs.”
Department of Energy (2010). “Retrospective Benefit–Cost Evaluation of U.S.
DOE Vehicle Combustion Engine R&D Investments: Impacts of a Cluster of
Energy Technologies,” mimeograph.
Kotchen, Matthew J. and Laura E. Grant (2008). “Does Daylight Savings Time
Save Energy? Evidence from a Natural Experiment in Indiana,” NBER
Working Paper 14429.
Heckman, James et al. (2010). “The Rate of Return to the High Scope Perry
Preschool Program,” Journal of Public Economics, 94: 114–128.
Hemenway, Derek E. and Faranak Rohani (1999). “A Cost-Benefit Analysis of
the Employment of People with Disabilities in Florida: Final Report,” Florida
State University.
Applied Economics. (2003). “Cost-Benefit Analysis of Proposed
New Health Warnings on Tobacco Products,” Applied Economics report.
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Learning Objectives for the Writing Assignments
Learning Dimensions
2.1 Identify the costs, benefits and
tradeoffs involved in economic policy
making
2.3 Compare and contrast alternative
economic policy assessments to reach a
defensible recommendation
4.2 Present the motivation, methods and
conclusions from applied economic
research
Rubrics
Derive research questions concerning
policy from conceptual and theoretical
foundations; integrate institutional context
into assessment of policy; identify private
and social impacts of policy
Characterize differences in methodology
and data used to assess policy; assess
weaknesses and strengths of alternative
approaches to policy assessment; propose
and support an assessment of a policyrelated body of research
Describe and motivate an applied
economic research question; identify and
explain why particular data and methods
are appropriate for a given empirical
analysis; interpret and communicate results
of an empirical analysis
UNCG Honor Code
Please familiarize yourself with the University honor code.
http://academicintegrity.uncg.edu/complete/
Faculty and Student Guidelines
Please familiarize yourself with the Bryan School’s Faculty and Student Guidelines.
http://www.uncg.edu/bae/faculty_student_guidelines.pdf