Economic Impact Analysis
Another example of economic policy analysis with significant relevance in the current economic climate is economic impact analysis. Whereas public expenditure reductions have traditionally been cost-driven, there is a greater need for spending decisions to reflect social benefits, as well as costs. Therefore, economic impact analysis is an increasingly popular area of policy analysis, as policymakers hope to understand the true value of the public services under their direction. This requires a variety of economic methodologies, from employment multipliers to hedonic regressions to reveal the value of amenities through house prices.