Author: Adam Jaffe
Event: Treasury/Ministry for Business, Innovation and Employment seminar, Wellington,
A policy or a programme is like a new drug. We would like to know if it is effective, and how its effectiveness compares to alternatives.
With a drug, it is not enough that the patient gets better. With a policy, it is not enough that the policy goal is met. We want to measure the treatment effect, i.e. how the state of the policy objectives compares to what it would have been without the policy.