Discourse on Social Planning under Uncertainty

Provides a broad perspective on the vexing problem of social planning under uncertainty, and specific methodologies to cope with it.

Integrates research in three fields –welfare economics, decision theory, and econometrics– to address uncertainty in the formation of public policy. Although all three fields are central to planning under uncertainty, they have interacted little with one another. This book enables researchers to interact constructively and build on mutual concerns.Economists have long studied policy choice by social planners aiming to maximize population welfare. Whether performing theoretical studies or applied analyses, researchers have generally assumed that the planner knows enough about the choice environment to be able to determine an optimal action. However, the consequences of decisions are often highly uncertain. Discourse on Social Planning under Uncertainty addresses the failure of research to come to grips with this uncertainty. Combining research across three fields – welfare economics, decision theory, and econometrics – this impressive study offers a comprehensive treatment that fleshes out a 'worldview' and juxtaposes it with other viewpoints. Building on multiple case studies, ranging from medical treatment to climate policy, the book explains analytical methods and how to apply them, providing a foundation on which future interdisciplinary work can build.