Social Impacts Measurement in Government and Academia Daniel Fujiwara Cabinet Office & London School of Economics.

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Presentation transcript:

Social Impacts Measurement in Government and Academia Daniel Fujiwara Cabinet Office & London School of Economics

I. Social impacts in public policy Economists in government have a long tradition of measuring social impact: Cost-Benefit Analysis (CBA).

The Green Book (1) CBA enters at the Appraisal stage Appraise policy interventions in terms of their social costs and benefits. Further supported through the Social Value Act (2012) ROAMEF cycle

The Green Book (2) Supplementary Green Book guidance provides guidelines on how to value social impacts

The Magenta Book Assessing whether the policy had a causal effect/impact

II. Social impacts research (1) Valuation and Evaluation (causality) are key to understanding social impacts. Valuation Theory: to find the monetary equivalent of the change in welfare or wellbeing associated with experiencing or consuming the ‘good’. We could look at people’s preferences or their wellbeing Wellbeing valuation: recent research is looking at assessing value in terms of changes in subjective wellbeing (Fujiwara & Campbell, 2011) with lots of potential for housing issues.

Social impacts research (2) Evaluation (causality) Evaluation scale (Dolan & Fujiwara (2012) BIS technical report) Theory: Identifying and measuring the counterfactual Many public sector organisations moving to the Maryland Evaluation scale. This scale ranks how well counterfactuals have been measured in the analysis. Level DesignStatistical method 5Randomised trials Evaluations with well implemented random assignment of treatment to subjects in treatment and control groups. 4Quasi- Experiments Evaluations that use a naturally occurring event (that makes the treatment assignment as good as random) 3Matching techniques; Regression analysis Non-experimental evaluations where treatment and comparison groups are matched on observable characteristics 2Simple comparisons Studies with a treated and comparison group, but with no attempt made to control for differences among the groups. 1Pre- and post analysis Studies where no comparison group is used. Outcomes are measured pre and post-treatment.

III. Housing and social impact Example: Attaching values to aspects of housing through the Wellbeing Valuation approach Preliminary findings (not for citation)