Getting from Economic Analysis to Policy Advice

James T. Bonnen and David Schweikhardt

Review of Agricultural Economics, 1998, vol. 20, issue 2, 584-600

Abstract: Economists play several distinct but necessary roles in the process of translating economic knowledge from the discipline to use in policy decisions. Economists engaged in disciplinary research might legitimately deal with more simplified abstractions of economic problems in conducting their research, whereas those engaged in providing policy analysis and advice to policy makers might face different constraints on the types of analysis that can be used by policy makers. In the role of policy analyst or adviser, economists face a number of challenges and risks. Those preparing to engage in such roles should understand (a) the constraints that will be faced in using and communicating economic analysis to policy makers, (b) the limitations of economic theory in addressing policy issues faced by decision makers, and (c) the risks inherent in participating in the policy-making process. The economist entering the policy process must be prepared to present economic advice in a manner that is easily understood and communicated and be prepared to address dimensions of policy problems that might not comply with the standard assumptions of neoclassical theory. The policy adviser must also be prepared to deal with databases that are often inadequate for decision-making purposes, time constraints that preclude the completion of a thorough analysis, value dimensions of policy issues that might overrule the results of economic analysis, and the fundamentally different roles of the policy maker and the economic adviser in the decision-making process.

Date: 1998
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