2023 was a big year for policy research. We saw an update of the federal cost-benefit analysis guidelines, new evidence of the importance of state safety nets, and more. Below is a quick selection of some of the most important research from the past year.
Office of Management and Budget Circular A-4
We’ve already written about the importance of Circular A-4 on the cost-benefit analysis world, but as arguably the most consequential new written report of the last year it is worth going over again. Circular A-4 is the Office of Management and Budget’s official guidance on how to perform regulatory analysis.
This is the most important guidance for cost-benefit analysis in the United States. Broadly speaking, many of the changes to this document make it so that regulatory analysis will put more emphasis on how policies affect future generations. Not all regulatory analysis is concerned with such long timelines, but those that are will not be as short-term focused as they have been.
Brookings Research on State Safety Nets
Just last month, Brookings released a report comparing the generosity of social safety nets in each state. By generosity, they specifically mean how eligibility changes across states (it is important to note that uptake for these programs is a separate problem). They find that safety net programs are often more generous on the East Coast, while the Deep South and Southwest regions are lacking slightly.
Additionally, this report looks at how safety net programs change over time. Unsurprisingly, the COVID-19 pandemic was responsible for the largest one-year increase in safety net generosity. The largest increase historically was after the 2008 financial crisis.
Flint Water Crisis Shows Economic Impacts
In 2015, Flint, Michigan experienced a health crisis due to a contaminated public water system. This event garnered national attention, and the problem was eventually resolved in 2016. The health effects of the poor drinking water have been explored previously, but this year a team of researchers looked at how this event has impacted housing prices in Flint.
They found that housing prices in Flint fell by as much as 20% following the crisis and have yet to recover, despite the fact that water quality has been stable for many years. Because most Americans accumulate wealth by owning homes, this is a major economic blow to these residents. This research highlights the importance of public policy in the aftermath of major crises. The long term effects of major events are not always obvious, but they can still be extremely severe.
Diversity among teachers shows positive long-run effects
A new study from researchers at American University has found that increasing racial diversity in the teaching workforce can lead to positive long run effects, especially for students from historically marginalized communities. Past research has shown that increased diversity can lead to many short term benefits, but this paper is the first of its kind that looks at long run benefits like college attendance.
These authors found that Black students who had at least one Black teacher in grades K-3 were 13% more likely to graduate from high school than their peers, and 19% more likely to go to college. White students experienced no long-term changes in educational attainment.
I am looking forward to seeing what new things we learn in 2024.