This article analyzes a model of the policy decision process in ministerial governments. A spending minister and a finance minister are involved in making a decision concerning a public project. The two ministers have partially conflicting preferences. Policy decisions are made in two stages. In the first stage the spending minister consults a technical expert to obtain information about the technical consequences of the project. If the technical consequences are favourable, in the second stage the finance minister consults a financial expert to obtain information about the financial consequences. The finance minister can veto a proposal for undertaking the project. This article illustrates the consequences of specialization for information transmission. A drawback of specialization is that projects are evaluated on the basis of their individual consequences rather than on the basis of their total consequences.

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Keywords decision analysis, economic policy
Persistent URL dx.doi.org/10.1093/jleo/15.3.602, hdl.handle.net/1765/12296
Citation
Swank, O.H., Letterie, W., & van Dalen, H.P.. (1999). A Theory of Policy Advice. Journal of Law, Economics, & Organization, 602–614. doi:10.1093/jleo/15.3.602