IDEAS home Printed from https://ideas.repec.org/a/taf/irapec/v21y2007i3p321-337.html
   My bibliography  Save this article

Reconciling Practice with Theory in the Micro-Evaluation of Regional Policy

Author

Listed:
  • Colin Wren

Abstract

This paper seeks to reconcile evaluative practice with theory, focusing on the micro-evaluation of UK regional industrial policy. Two issues are examined: the measurement of the pecuniary external effects, including displacement and linkages; and the concept of 'additionality', which is central to the industrial survey approach. It argues that current evaluative practice is at odds with theory, but while cost-benefit analysis simplifies the measurement of the external effects, it has other features that may limit its appeal. On 'additionality', the paper traces its evolution, and shows that it is a multi-dimensional concept. It argues that in practice the use of 'additionality' is deficient as it ignores the firm's private funds and all forms of deadweight transfer.

Suggested Citation

  • Colin Wren, 2007. "Reconciling Practice with Theory in the Micro-Evaluation of Regional Policy," International Review of Applied Economics, Taylor & Francis Journals, vol. 21(3), pages 321-337.
    • Handle: RePEc:taf:irapec:v:21:y:2007:i:3:p:321-337
    DOI: 10.1080/02692170701390312
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/02692170701390312
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/02692170701390312?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Sugden, Robert & Williams, Alan, 1978. "The Principles of Practical Cost-Benefit Analysis," OUP Catalogue, Oxford University Press, number 9780198770411.
    2. Honohan, Patrick, 1998. "Key issues of Cost-Benefit Methodology for Irish Industrial Policy," Research Series, Economic and Social Research Institute (ESRI), number GRS172.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Marta Gancarczyk, 2009. "Ocena publicznej i prywatnej formy świadczenia usług dla przedsiębiorców w Małopolsce," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 5-6, pages 91-111.
    2. Kim Swales, 2008. "The Relative Efficiency of Automatic and Discretionary Industrial Aid," Working Papers 0812, University of Strathclyde Business School, Department of Economics.
    3. Robert K. Gruenwald, 2014. "Alternative Approaches in Evaluating the EU SME Policy: Answers to the Question of Impact and Legitimization," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 2(2), pages 77-88.
    4. Petr Janský & Tomáš Křehlík & Jiří Skuhrovec, 2016. "Do EU funds crowd out other public expenditures? Evidence on the additionality principle from the detailed Czech municipalities’ data," European Planning Studies, Taylor & Francis Journals, vol. 24(11), pages 2076-2095, November.
    5. Lenihan, Helena, 2011. "Enterprise policy evaluation: Is there a 'new' way of doing it?," Evaluation and Program Planning, Elsevier, vol. 34(4), pages 323-332, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. van Hulsen, Merel A.J. & Rohde, Kirsten I.M. & van Exel, Job, 2023. "Preferences for investment in and allocation of additional healthcare capacity," Social Science & Medicine, Elsevier, vol. 320(C).
    2. Peter Mackie & John Nellthorp & James Laird, 2005. "Treatment of Induced Traffic," World Bank Publications - Reports 11796, The World Bank Group.
    3. Girma, Sourafel & Görg, Holger & Strobl, Eric & Walsh, Frank, 2008. "Creating jobs through public subsidies: An empirical analysis," Labour Economics, Elsevier, vol. 15(6), pages 1179-1199, December.
    4. Mark S. Thompson, 1983. "Health Versus Money," Medical Decision Making, , vol. 3(3), pages 285-297, August.
    5. Goswami, Indranil & Urminsky, Oleg, 2021. "Don’t fear the meter: How longer time limits bias managers to prefer hiring with flat fee compensation," Organizational Behavior and Human Decision Processes, Elsevier, vol. 162(C), pages 42-58.
    6. Lin, Tun & De Guzman, Franklin, 2007. "Tourism for pro-poor and sustainable growth: economic analysis of tourism projects," MPRA Paper 24994, University Library of Munich, Germany.
    7. Donald F. Vitaliano, 1992. "An economic assessment of the social costs of highway salting and the efficiency of substituting a new deicing material," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 11(3), pages 397-418.
    8. Joseph H. Cook, 2013. "Principles and standards for benefit–cost analysis of public health preparedness and pandemic mitigation programs," Chapters, in: Scott O. Farrow & Richard Zerbe, Jr. (ed.), Principles and Standards for Benefit–Cost Analysis, chapter 3, pages 110-152, Edward Elgar Publishing.
    9. Culyer, Anthony J. & Evans, Robert G., 1996. "Mark Pauly on welfare economics: Normative rabbits from positive hats," Journal of Health Economics, Elsevier, vol. 15(2), pages 243-251, April.
    10. Joanna Coast & Richard Smith & Paula Lorgelly, 2008. "Should the capability approach be applied in Health Economics?," Health Economics, John Wiley & Sons, Ltd., vol. 17(6), pages 667-670, June.
    11. Anthony Boardman & Shaun Hargreaves-Heap, 1999. "Network Externalities and Government Restrictions on Satellite Broadcasting of Key Sporting Events," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 23(3), pages 165-179, August.
    12. Chiara Del Bo & Carlo Fiorio & Massimo Florio, 2011. "Shadow Wages for the EU Regions," Fiscal Studies, Institute for Fiscal Studies, vol. 32(1), pages 109-143, March.
    13. Blackorby, Charles & Donaldson, David, 1999. "Market demand curves and Dupuit-Marshall consumers' surpluses: a general equilibrium analysis," Mathematical Social Sciences, Elsevier, vol. 37(2), pages 139-163, March.
    14. Ranger, Robert F. & Stevens, Robert D. & Saper, Roy A. & Ho, Ting-Ing, 1985. "A General Purpose Benefit-Cost and Cost-Effectiveness Analysis Computer Program (Bencost)," Agricultural Economic Report Series 201347, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    15. Hultkrantz, Lars & Svensson, Mikael, 2012. "A Comparison of Benefit Cost and Cost Utility Analysis in Practice: Divergent Policies in Sweden," Working Papers 2012:5, Örebro University, School of Business.
    16. Marco Grasso, 2004. "Utilizzo e diffusione della valutazione economica dei beni," Others 0406002, University Library of Munich, Germany.
    17. Bengt Jönsson, 2006. "Time for a common standard for cost-effectiveness in Europe?," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 7(4), pages 223-224, December.
    18. Dolan, Paul, 1998. "The measurement of individual utility and social welfare," Journal of Health Economics, Elsevier, vol. 17(1), pages 39-52, January.
    19. Anthony Ogus, 1998. "Regulatory Appraisal: A Neglected Opportunity for Law and Economics," European Journal of Law and Economics, Springer, vol. 6(1), pages 53-68, July.
    20. Richard S. J. Tol & Seán Lyons, 2008. "Incorporating GHG Emission Costs in the Economic Appraisal of Projects Supported by State Development Agencies," Papers WP247, Economic and Social Research Institute (ESRI).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:irapec:v:21:y:2007:i:3:p:321-337. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CIRA20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.