CNSP
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The CNSP(Costs of Non-Social Policy) spreadsheet model can be seen as an aid to qualitative decision-making. It is an empirical approach to appraisal and impact assessment that focuses on what might be lost if social policy is lacking. With that it goes beyond routine cost-benefit assessment. It emphasises the generalised insurance role of social policy and the need to examine the counterfactual to ascertain how the problem would otherwise be accommodated. To allow the different dimensions of assessment of the costs of any non-social policy to be brought together, a spreadsheet to enable a simple evaluation was constructed. It combines different dimensions of well-being and allows the weights assigned to different variables to be changed in making the overall assessment.
The purpose of the spreadsheet is to push the user to be systematic in thinking through the variables to be explored in a ‘costs of non-social’ exercise, but it is not intended to be a decision tool in its own right. The mechanical computation cannot be a substitute for an underlying understanding, although its value lies in exerting a discipline on the framework for analysis of the proposed change.[1]
Result
Typical Model Applications:
To show how the CNSP approach can be used in practice, three case studies embracing very different sorts of social policy were carried out. In all cases the ‘costs of non-social’ policy were evaluated:
- Implication of ending the guaranteed minimum income scheme (GMI).
- Assessment of the costs of non-policy in the case of job training for the unemployed (JTU).
- Effects of a shift to a lower employment protection legislation (EPL) system[1]
Standard Model Specification:
Sectoral coverage:
Only individuals/household sector
Consumption categories: --
Behavioural assumptions: --
Energy-environment model: --
Government behaviour: --
Dynamic structure: --
Linkage between regions and countries:
Only a single country is considered; no linkage[1]
Market Structure:
--
Main Model Results:
Macro economic results:
- Index of well being which represents economic and social welfare. This index is made up of component sub-indices with weights according to the user’s preferences.
- Sub-indices are: 1. consumption flows (disposable income, cost of leisure, government expenditure), 2. wealth stocks (net stock of fixed capital per capita, stock of R&D expenditure per capita, international investment position per capita, cost of greenhouse gas emissions per capita, a measure of human capital), 3. inequality (Gini coefficient, poverty intensity), 4. security (risks of unemployment, ill health, single parent poverty and old age poverty), 5. societal wellbeing.
Sectoral economic results:
--
--[1]
Required technical infrastructure:
Microsoft Excel spreadsheet.
Structure of Input Data:
Exogenous variables:
- Variables that can be changed for the purpose of policy analysis: e.g. subsidy rates, replacement ratio (the user selects the exogenous variables that he or she believes will be affected by the non-policy).
Base year data:
- Base year data are set equal to plausible values for a hypothetical EU member state for a hypothetical year. The actual values entered have been drawn mainly from German data for the late 1990s.[1]
Calibration:
- The spreadsheet contains a calibrated version of the index of well being.
Model Extensions:
--
Links to other Models, Projects, Networks:
--
Regional scope:
The baseline values are set equal to plausible values for a hypothetical EU member state for a hypothetical year and can be changed by the user.[1]