Policy analysis by corporations and trade associations

Abstract

Corporations and trade associations engage in economic, legal, political, and scientific policy analysis. They employ more lobbyists, file more comments on proposed regulations, and sit on more government advisory committees than other categories of interest organizations. These efforts to influence government make extensive use of policy analysis. Routine business decisions by corporations involve of many of the tools used in policy analysis such as calculating the net present value, discount rate, and benefits and costs of alternative investment decisions. We examine the effectiveness of corporate policy analyses in three ways: (1) comparing the success of different interest organizations comment letters concerning a proposed regulation, (2) conducting case studies of three major government decisions involving policy analysis, and (3) examining the use of waivers to improve profits. The chapter ends with recommendations concerning how policy analysts can improve our understanding of American democracy.