STUDY GUIDE
Module 1: The Foundations & Rationale of Public Policy
1. DEFINING PUBLIC POLICY
While academic definitions vary, this course relies on Leslie Pal’s foundational
definition:
"Public policy is a course of action or inaction chosen by public authorities to
address a given problem or interrelated set of problems."
To master this concept for exams, you must break down its core elements:
● The Role of Inaction: A government choosing not to do something is a legitimate
form of policy decision-making. However, this inaction must be an intentional
decision. If a government fails to act simply because it is unaware a problem
exists, that does not constitute a policy response.
● Action and Implementation: For a policy to exist, it must involve actual action
and implementation. If a government promises to address an issue but never
follows through, it has merely made a "policy promise," not a public policy.
● Public Authorities: In this context, public authorities generally refer directly to the
government (those with legitimate, coercive power).
2. THE SUBJECTIVITY OF "POLICY PROBLEMS"
The greatest debates in public policy revolve around what actually constitutes a societal
problem.
● Ideological Framing: Whether an issue is perceived as a problem depends
entirely on an actor's worldview or ideology. For instance, climate change is
viewed as a critical problem by some political factions, but not considered a
problem by others.
● Solutions Looking for Problems: The traditional policy cycle assumes that a
problem emerges first, followed by a solution. In reality, actors sometimes already
possess a specific policy solution they want to enact, and they actively search for a
"problem" to justify implementing it.
3. THE RATIONALE: WHY DO WE HAVE PUBLIC POLICY?
The question of why public policy exists is an extension of why we have government at
, all.
The Welfare Economics Perspective
The most dominant and influential perspective on why public policy exists stems from
traditional welfare economics.
● This discipline emerged during the Great Depression and expanded post-WWII,
heavily associated with Keynesianism and the rise of the welfare state.
● Welfare economists argue that the private market often under-provides certain
necessary goods and services.
● If left entirely to the private sector, society would not get enough of these
essential services.
● Historical Example: Historically, clean water and sanitation were only available to
the wealthy who could afford them. Governments intervened to provide these
services to ensure lower-income populations had access, which generated
massive societal benefits like reducing disease.
4. THE TYPOLOGY OF GOODS
To understand welfare economics, you must understand how economists classify goods.
Goods are measured on two metrics: Rivalrous (does my consumption deplete the
supply?) and Excludable (can I stop you from getting it if you don't pay?).
Good Type Characteristics Definition & Examples
Pure Private Goods Rivalrous & Excludable If I consume it, you can't. If you
don't pay, you can't have it.
(Example: Buying the last Coke
from a vending machine).
Pure Public Goods Non-Rivalrous & My consumption doesn't stop yours.
Non-Excludable You can't be barred from using it.
(Example: Clean Air. As referenced
in class via the movie Spaceballs,
preventing someone from
consuming air requires killing
them).
Toll / Club Goods Non-Rivalrous & My consumption doesn't stop yours,
Excludable but access is restricted by a paywall.
(Example: Netflix subscription, Toll