Storey: six steps toe heaven

Question

Storey's paper seeks to

Answer 1

evaluate the impact of public policies to assist the SE sector. It identifies 6 approaches, from most simple to most complicated: six steps to heaven

Answer 2

When its succesfulcan, it can lead to lower rates of out migration, because people feel secure of getting a job
this can lead to an increasement of unemployment

Answer 3

Firms who participate in schemes are asked for their opinions.

Questions

did participants like it?
Where there problems applying? Like, where procedures slow?

Problems

even if they like it, it doesn't tell if its effective
all it can do is offer insights into policy delivery, but thats not the key question

Answer 4

Not only asked if they liked the assistance, also whether they thought this made any difference into the performance of their firm.

Questions

did firms think it provided additionaly?
would firms have it done anyway?
does it cause displacement?

Problems

provide answers they think you want to hear
no way of checking
only snapshot of surviving firms

Answer 5

it cannot be estimated simply by seeking the views of firms, even if they are honoust
to overcome these problems: necessary to compare assisted firms with groups of not assisted firms: this is what evaluation does.

Answer 6

Includes matching: researchers identify a specific control group wich they can compare with assisted firms.

Approach

compare assisted with match firms, on basis of age, sector, ownership, geography etc
compare performance of both groups over same time period

Problems

perfect matching on four criteria can be difficult
sample selection bias: more motivated firms apply, and attribute differential performance

Answer 7

Here there could be a problem of self-selection.

Approach

use of statistical techniques
use of random panels

Problems

policy makers feel uneasy about statistical adjustment (procedures are very complicated)
using random panels means public money is given to firms who will not benefit

Answer 8

Consider the factors which influence performance from assisted AND not assisted. This process is called matching. And leads to step 5.

Answer 9

clear definitions
clear objectives
clear targets
coordinates

Answer 10

they use tax money for 'economic objectives', but are really a mechanism for persuading a certain group (in this case SE), which does not lead to increase in net economic, tax payers sees nothing

Answer 11

SE are likely to provide part time work
which is likely to be registered as employed

Answer 12

Steps 1-3 are monitoring: it relies exclusively upon the views of the recipients of the policy
Steps 4-6 are evaluation: attempts to determine the impact of the policy initiatives.

Answer 13

Compare firms who are assisted by policy, with those who are not. Any difference can be attritibuted to impact of policy.

Approach

employment/sales growth of assisted firms compared with typical

Problems

survival of assisted firms compard with typical firms
assisted firms are not typical. SO FIRMS WITH ASSISTANCE MAY NOT BE TYPICAL OF FIRMS IN ECONOMY AS A WHOLE. MAY BE SECTORIAL/GEOGRAPHICAL FOR EX.