Affected by the ideological symbolism and political controversy surrounding privatization, much of the work on this subject is marred by definitional uncertainty; what should be included in the concept? To get away from this, and to prepare the ground for meaningful comparative analysis of the phenomenon, I propose both a definition and a taxonomy. I argue that it is the active and conscious transfer of reponsibility from the public to the private realm that should form the core of the concept. Furthermore, I argue that neither the principles for, nor the level of, provision of goods and services should be included in the definition. Finally, I propose that the taxonomy should be based on the public/private dichotomy of responsibility allocation included in the definition, as well as on three main activities in goods and services production which the government could privatize; regulation, financing, and production.

This article examines the divergences in labor market-performances in four small, open economies: Austria, Belgium, the Netherlands, and Sweden. It argues that great unemployment in Belgium and the Netherlands is partly due to the implementation of deflationary policies during the 1980s. The decline of Keynesian intervention in Belgium and the Netherlands is traced to the institutional independence of their central banks to set monetary and exchange rate policies separate from government. Because the Swedish and Austrian central banks are more integrated in the policy process and their countries are not members of the Common Market or the European Monetary System, social democratic governments have been able to go against the European trend of monetary restrictiveness and fiscal austerity. Accordingly, business in Austria and Sweden is more optimistic about future profit returns and is more willing to invest in productive capital, resulting in lower unemployment.

This paper challenges the mechanical application of inflation accounting to public sector deficits as it has been suggested in recent years. Although the theoretical considerations underlying the proposed adjustment for the inflation premium of interest payments are well taken, the new approach has fundamentally focused on measurement issues with little attention paid to the behavioral aspects of microeconomic adjustment. This paper, therefore, raises skepticism about the usefulness of inflation accounting, if such a correction is not accompanied by a conceptual model that links behavioral responses of individuals to balance sheets and other stock variables. In a departure from previous investigations, the paper also points out the possibility that inflation accounting might have more relevant implications for public, rather than private, spending.

Policy design, whether conceptualized as a verb referring to the process of formulating policy ideas, or as a noun describing the logic through which policy intends to achieve its objectives, remains relatively uncharted territory. This paper reviews what we know about how policy designs emerge, and identifies the kinds of biases and weaknesses that are introduced into designs by the decision heuristics employed. Theories of policy invention and expert decision-making suggest that individuals search through large amounts of relevant information stored in memory, reason by analogies, make comparisons, and either copy or simulate patterns of information. Policy scholars may contribute to improved policy design by making more explicit the biases introduced through reliance on decision heuristics, and by suggesting a more formal, self conscious search and selection process that enables designers to be more discriminating when they pinch policy ideas from other contexts. To perform this task, comparative policy analysis is needed in which common elements that exist in virtually all policies are identified and the underlying structural logic of the policies is made explicit. In this paper we set forth generic elements found in policies, describe and compare some of the more common design patterns, and discuss the circumstances where these may be inappropriately copied or borrowed, thereby thwarting the effectiveness of the policy.

The planning of major energy facilities in Western Europe has met with increasing opposition in the last 15 years. In Scotland formal objections to such developments are considered in public inquiries; in Germany the equivalent institution is the hearing. These two institutions differ fundamentally in scope and in the means of presenting and examining evidence. The involvement of the courts has been greater in Germany, where lengthy cases examining procedural and substantive issues have developed a new field in legal administration. Developers, objectors and administrators find fault with the planning and legal systems, but outcomes invariably favour the developers. Of the two institutions examined, the British public inquiry offers objectors considerably more scope than does the German hearing.