Economics and impact assessment: ceteris paribus or mutatis mutandis

In: Policy studies review: PSR, Volume 8, Issue Autumn 88

Abstract

Economic theory frequently uses ceteris paribus assumptions to hold complicating variables constant to analyze the effect of one variable on another. Policy-makers must consider effects of policies with other things changing as they will (ie mutatis mutandis). Argues that impact assessment can reconcile the often narrow approach of economic analysis and the need for broad consideration of implications; its methods provide a proper place for economic analysis in policy assessment. (Abstract amended)