PSC 314 - Public Policy Chapters 14 and 15

Public Company

A for-profit firm owned by its shareholders.

Whistle-blowers

Employees who report crimes within their own companies

Stakeholders

The affected parties in any policy decision

Law of unintended consequences

The tendency for policymakers to attempt to fix one problem, and in the process, inadvertently create another one or make the original problem worse.

Perverse incentives

Incentives for stakeholders to respond in ways that cause harm.

Distributional Effects

The impact of a policy change on different groups.

Wonks

Individuals with a studious appreciation for the elaborate substance of public policy regardless of political feasibility (academics)

Hacks

Individuals who relish in “winning” in the political process, without much regard for whether that victory makes the world a better place (politicians)

Regulate

To require individuals and firms to act in a specified manner and to enforcement the requirements with fines, confiscation of property or even imprisonment.

Deregulation

Policymakers decide society would be better off without some regulation that currently exists because it is causing an outcome that is less desirable than what the market would deliver.

Pigovian Tax

A tax designed explicitly to raise the private cost of some activity to equal the social cost.

Privatization

Involves devolving some function of the Government to the private sector

Contractible Quality

The Government can specify exactly what is to be done and then evaluate if a private firm is meeting that commitment.

Self-correcting

(In a market) Disruptions or other problems usually set in motion their own solutions.

Grassroots Campaign

A “bottom-up” campaign strategy in which a network of dedicated activists uses a wide array of tools, often inexpensive and low tech, to win support for their cause.

Gatekeepers

Individuals who institutional powers give them disproportionate influence over legislative outcomes.

Framing

The strategic use of language to broaden the appeal of a policy position or to lessen the appeal of an opposing position.