Rationalizing Government Programs

Abstract

The theoretical economic rationale jor public sector intervention into markets no longer develops a sufficient justification for implementing programs. If the "rationale issue "is to be resolved in program evaluations, it should be raised in the context of a debate informed by empirical attempts to assess the cost of the market failures that give rise to the policy concern and the losses that will be created by expanding the public sector and interfering in market processes. Rationale assessments based only on theoretical arguments will yield questionable rationalizations of programs and policy directions. These conclusions are developed by examining the rationale assessment carried out by Canada Mortgage and Housing Corporation for the Residential Rehabilitation Assistance Program.