Uncertainty and the policy process, Public Economics

Assignment Help:

As we know now that in policy process, policy outcome may differ from the social planner outcome not only because different policies may be chosen but because a given policies may have different effects so leading to time inconsistency. Here, the key point is the reaction time. In a dynamic setting, optimal choice of a policy may depend not only on the current state but also on the expectations made for the future. Expectation, both psychologically and technically plays a significant role in determining the forward looking behaviour. When we pose a question, ‘how will forward looking agents behave when, a policy expected in future is crucial for determining current behaviour', we use current information to predict the future.


Related Discussions:- Uncertainty and the policy process

Valuation tools - shadow prices, Normal 0 false false false...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Over-exploitation of resources, Normal 0 false false false ...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

MULTI-UNIT FINANCE, WHAT ARE THE PRINCIPLES OF MULTI-UNIT FINANCE?

WHAT ARE THE PRINCIPLES OF MULTI-UNIT FINANCE?

Business environment, There is no doubt that the environment surrounding bu...

There is no doubt that the environment surrounding business organizations play an important role in influencing the decisions of those organizations and their strategic plans. That

Fiscal policy, What are objectives of fiscal policy

What are objectives of fiscal policy

Importance of valuation of environment, Normal 0 false false ...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Pubic Goverance, The fragmentation and redundancies of the U.S federal syst...

The fragmentation and redundancies of the U.S federal system are expensive in terms of coordination and personnel costs. Would you favor or oppose greater consolidation? Why or why

How state should intervene through government apparatusin, Why and how the ...

Why and how the State should intervene through government apparatusin the economic sphere of the country, has been a significant discourse in economicsfor long. According to one th

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd