Governmental failures in evaluating programs

Author: Glazer A.   Hassin R.  

Publisher: Springer Publishing Company

ISSN: 0048-5829

Source: Public Choice, Vol.94, Iss.1-2, 1998-01, pp. : 105-115

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Abstract

Consider a government that adopts a program, sees a noisy signal about its success, and decides whether to continue the program. Suppose further that the success of a program is greater if people think it will be continued. This paper considers outcomes when government cannot commit. We find that welfare can be higher when information is poor, that government should at times commit to continuing a program it believes had failed, and that a government which fears losing power may acquire either too much or too little information.