ABSTRACT
Discussion of policy issues requires evidence about more than fundamental relationships and processes, and this is well illustrated by PSSRU studies. Knowledge of fundamental properties in itself can mislead unless it is combined with additional information and is presented in another format (Davies, 1978). How that is illustrated by this study will also become clear when the discussion of policy propositions is compared with evidence about productivities alone. Meanwhile Part II makes the transition from the fundamental knowledge about the production relations of welfare to the factual basis and analytic framework for the discussion of policy issues, by providing the tailor-made empirical estimates for the policy propositions discussed in the last chapter of the book. The purpose of this chapter is to describe features of the analysis whose results are presented in the rest of the section.
