Policy Analysis

The goal of policy analysis is to give decision-makers a clear picture of the options available and the likely consequences of each. This might involve assessing the legal and administrative feasibility of a measure, estimating its economic effects, or examining how different groups would be affected. The work often operates under time pressure, since it feeds directly into policy decisions.

The work involves defining the policy question, reviewing relevant evidence, building models to estimate effects, and writing up findings in a structured way. Cost-benefit analysis is a common method: it quantifies the expected gains and losses from a policy in monetary terms to support comparison across options. Stakeholder consultations and legal constraints often shape which options are analysed.

The main tools are Excel, R, Python, and Stata. Cost-benefit analysis uses standard economic modelling techniques. Microsimulation models are used to estimate how policy changes would affect individual households or businesses. Knowledge of the relevant policy domain is important for framing the analysis correctly.

Policy analysis projects appear at government ministries, regulatory bodies, and public-sector consultancies. In the Netherlands, this type of work is conducted at ministries such as the Ministry of Finance and at bodies like the CPB and AFM. The project connects to Policy Analyst and Economic Researcher roles, and overlaps closely with Policy Research and Policy Evaluations.