Welfare-based Policy Analysis

Welfare-based policy analysis examines economic gains and losses implied by change, market imperfections or by public interventions in markets. In resource markets, market imperfections typically derive from maladaptive property rights and unassigned costs in resource use or production. Main Street Economics is able to apply economic welfare analysis to assess these imperfections and to evaluate policy options for addressing them.

In its study of forestland retention in Maryland, Main Street Economics undertook a review of state, federal and local government policies and programs aimed at keeping land in forest uses. This review considered objectives, administrative and economic costs of policies and programs, and compared these with benefits accruing to their implementation. In another application of welfare analysis of public policies, Robert Wieland undertook a review of environmental regulations and programs as a part of an industrial sector policy review in Sri Lanka for the Asian Development Bank.

In developing countries, policies and programs typically target accelerated economic development. Robert Wieland has undertaken numerous project appraisals and evaluations, assessing the likely and ultimate returns to investments in programs and institutions that pursue those objectives. Much of this work has focused on financial institutions serving targeted clienteles, the provision of economic infrastructure (especially roads), and programs targeting an enabling environment for small businesses.