Tuesday, March 17, 2009

NESC Report

Ideas from behavioural and related modern microeconomics appear to have had no effect on the debate in Ireland. I think this is a fundamental imbalance. The recent NESC report Ireland’s "Five-Part Crisis: An Integrated National Response" contains much of value in terms of highlighting the magnitude of the Irish economic situation and the need for something to be done but the fact that irish policy-makers still think of economics solely as macroeconomic stabilisation is harming debate in Ireland to a huge extent.

Until we start seeing policies in terms of principles such as specific meaningful targets, accountable decision makers, experimental methods, proper cost-effectiveness appraisals (which respect causal reasoning) then public sector service delivery is not going to be meaningfully considered as part of the solution to irish economic recovery.


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