What is Evaluation?

Evaluation is where you move beyond analysis and demonstrate critical thinking by assessing the impacts, assumptions, and priorities of a policy. Unlike analysis, which focuses on explaining the theory, evaluation challenges the theory and reflects on its limitations.

The goal is to highlight uncertainties, priorities, and trade-offs. It’s not enough to state the expected outcomes of a policy—you must assess whether those outcomes are realistic, fair, and align with societal goals.

The CLASPP Framework

CLASPP stands for:

• Conclusions: Summarize the theoretical insights from your analysis. What can we conclude from the theory and diagram?
• Long-term and Short-term Effects: Explore whether the policy has different impacts over time. Are there unintended consequences?
• Assumptions: Identify the assumptions behind the theory and analyze their limitations. Are they realistic?
• Stakeholders: Discuss how the policy affects different groups such as consumers, producers, and the government.
• Priorities: Reflect on the societal priorities that the policy addresses. Does it align with societal goals?
• Pros and Cons: Highlight additional advantages and disadvantages of the policy.

Examples of Evaluation

Long-term vs. Short-term Effects

Short-term benefits of a policy might resolve immediate issues but create long-term inefficiencies. For instance, subsidies might encourage production in the short run but lead to overproduction in the long term, distorting markets.

Assumptions

Economic theories often assume "ceteris paribus" (all else remains constant). However, this is rarely the case in real-world scenarios. For example, a tax might assume rational consumer behavior, but in reality, consumers might not respond as expected.

Stakeholders

A price ceiling might benefit consumers by lowering prices, but it could harm producers who can no longer sell at profitable rates. Identifying winners and losers is a key part of stakeholder evaluation.

Common Pitfalls to Avoid

• Repetition: Avoid simply repeating the same points about the key concept. Add depth and new insights in each paragraph.
• Overcomplication: Keep your analysis concise and focused. Use clear cause-and-effect relationships to explain economic outcomes.