ABSTRACT

In the final chapter of this book, we turn to the arena of macroeconomic policy. The term “policy evaluation”, sui generis, refers to any attempt by social scientists – judgemental or statistical – to assess the pros and cons of a specific policy intervention. Here, we are only concerned with the use of model simulation and control techniques to examine the economic impact of, and feedback on, public policies. The simulations described in this chapter are of course not exhaustive; rather, they illustrate how a broad range of real-world policy options faced by the Singapore government can be illuminated by econometric analysis. Still, these exercises are prescriptive because they lead to conclusions on how policy could or should be conducted.