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Criteria

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Policy analysis usually includes economic criteria. This may include factors such as impact on the economy, expected public revenue and

spending. The most common economic criterion is cost. This may include the costs of borrowing funds, costs to implement the policy,

decreases in net worth, and other costs that cannot be easily quanti�ed as well as �xed costs, maintenance costs, and opportunity costs.

If not all costs are identi�ed and counted, accountability concerns may develop.

• Marginal cost: Marginal cost is the cost of producing one more unit of something that is already being produced.

• Bene�ts: Bene�ts that can be directly ascribed to the policy alternative include things such as interest that is accrued.

Economic Criteria

When examining the fairness criteria, determine who pays for the policy (someone must always pay) and who bene�ts from it. If those who

pay for a policy do not bene�t, it is not likely to be fair. The most popular proposals have been “tax the rich” or tax “business” but this is not

necessarily the best solution.

Most people agree that discrimination based on arbitrary factors such as race, gender, disability is wrong, and that all people need to be

treated the same. Horizontal fairness tells us whether burdens and bene�ts are distributed equally amongst societal groups. Vertical fairness

concerns whether the burdens and bene�ts are shi�ed among unequal groups. Intergenerational fairness concerns whether burdens and

bene�ts are being shi�ed from one generation for another. An example of intergenerational fairness is that the current generations received

COVID-19 stimulus and unemployment enhancement money and future generations are going to have to pay for this and the associated

interest.

Fairness Criteria

E�ectiveness is probably the most o�en used criterion because it measures how well the policy option has solved the problem.

Political Criteria

Elected or appointed o�cials must support policy alternatives in order for approval. For this reason, it is important to know that the

alternative will be acceptable and appropriate to the citizens and legislators. Examining current law determines if further amendments are

required and whether or not constitutionality will help determine the political acceptance.

Administrative Operability

Government agencies tasked with implementing policy, should determine administrative operability and feasibility, in order to ease the

process. Consider whether the agency has the authority, personnel, skills, funding, and training to implement the policy.

Political and Administrative Criteria