ABSTRACT

A superior policy design is a matter of determining the parameters of a given policy situation and of matching the needs for action, with the supply of tools available. Good policy designs are expected to feature mixes in which there are few contradictions and to result from a logical effort to match policy tools and goals based on theory and experience. In assembling such designs, an intimate knowledge of the strengths and weaknesses of individual tools is required along with an idea of how they fit together and operate in a mix. The literature on policy design suggested several maxims or heuristics which can be used to head off common errors in policy design. A key principle of policy design thinking is to try to maximize supplementary effects while minimizing counterproductive ones. Much work on policy design and policy mixes has focused on the need for the various parts of a mix or portfolio to be integrated for maximum effectiveness.