The relative effectiveness of various institutions, such as the market or government, is based on the ability for individuals to access and use dispersed knowledge in society and the incentives that steer their actions. Market process theory emphasizes the effectiveness of the price system to consolidate and transmit knowledge in the marketplace.
Together this framework provides new insights on the capability of individuals to cooperate and improve society, and the limits to government interventions in society. The original research in each chapter uses this economic way of thinking to analyze a variety of public policy issues, examining the incentives responsible for and the factors that contribute to the creation and effectiveness of the policies. These chapters, authored by public policy practitioners and researchers, tackle such pressing issues as public education, the process for approving medical devices, tax policy, and land use regulation.
Introduction, Stefanie Haeffele
Part I – International Policy
- Can Governments Create Bureaucratic Structures That Overcome Knowledge and Incentive Problems? An Analysis of the Millennium Challenge Corporation, Rosemarie Fike
- The Political Economy of Intervention in the Conflict against ISIS, David Wille
Part II – Federal Policy
- FDA Effectiveness Standards: Helpful or Harmful? Anna Rivers
- Exit, Voice, and Incentives: An Institutional Analysis of Urban Public School Districts, Rachel Reese
Part III – State and Local Policy
- Firm-Specific Tax Incentives: The Bad and the Ugly, Adam N. Michel
- A Better Tomorrow: Policy Reform and the Limitations of State-Led Targeted Economic Development, Courtney Michaluk
- The Political Economy of Casino Licensing: A Case Study on Maryland’s Experience, Candace McTeer Mottice
- The Political Economy of D.C. School Choice: An Institutional Analysis of the Opportunity Scholarship Program, Allison Kasic
- Stifling Urban Development with Land-Use Regulation: A Case Study of Redevelopment in Tysons Corner, Virginia, Emily Hamilton
About the Authors
Stefanie Haeffele is the Deputy Director of Academic and Student Programs and a senior fellow for the F. A. Hayek Program for Advanced Study in Philosophy, Politics, and Economics at the Mercatus Center at George Mason University.
Public policies are frequently driven by a combination of good intentions and special-interest politics. Understanding this, Knowledge and Incentives in Policy applies public choice and market process theory to analyse a diverse array of important public policy topics such as foreign aid, environmental protection, and land-use regulations. Equally important, the authors are as diverse as the topics covered.
Knowledge and Incentives in Policy offers a valuable set of analyses of a variety of local, state, national, and international policy initiatives. Each policy effort is scrutinized with respect to its incentive effects and potential knowledge problems. This volume offers a treasure trove of highly pertinent, timely, and useful examples.