Government Economic Service and Applying for Fast Stream

GOVERNMENT ECONOMIC SERVICE

Making economists betterMaking better use of economics

GES

UNCLASSIFIED

GES presentation

Alex ShirvaniAssistant Economist, BIS

• Economics in Government • What government economists do• The GES as a career• How to get in

GOVERNMENT ECONOMIC SERVICEMaking economists betterMaking better use of economicsGE

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Economics of Government Intervention

The First Rule of Welfare economics:

A perfectly functioning market will lead to a Pareto efficient outcome:

The most efficient factor mix is used in production

The right things are produced given existing factors

Things are consumed by people that value them most


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Economics of Government Intervention

Making the UK economy more efficient means:

We produce more given the resources and factors we have

We use the factors better (people have jobs suited to their skills)

We produce things where we have a comparative advantage

We have more things to export abroad

The UK is better off


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Efficiency interventions


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Market failuresIf there’s a market failure, government may be able to correct it


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Imperfect competition Energy markets, transport

Externalities Negative: pollutionPositive: research spillovers, social benefits from education

Asymmetric information

Healthcare, credit markets, some consumer markets, moral hazard problems in banking

Public goods National defence, street lighting, criminal justice system

Tackling market failures


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Information, education and advice

Publishing league tables, crime statsPublic education campaigns: ‘talk to Frank’LabellingAdvisory servicesReporting/disclosure requirements

Direct provision Providing policing, armed forces, bird flu vaccineCommissioning private sector to carry out contracts (eg private prisons)

Tackling market failures


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Economic instruments Taxes, chargesSubsidies, grants, tax creditsTradable permitsGovernment loan guarantees

Regulation and legislation

Rail fare, utility price regulationCompulsory motor insuranceTrading standards, health & safetyBanning tobacco advertising

For more on this google “Understanding Policy Options” for a fantastic pdf document.

Equity interventions

Equity

A Pareto efficient outcome might not be particularly ‘equitable’

It is Pareto efficient if one person has everything!

Government may also intervene for reasons of ‘equity’ (ie redistribution of wealth) to tackle social deprivation

- Providing free prescriptions - Extra money for schools in deprived areas- Fee incentives to encourage access to HE from poorer students


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Long run growth interventions

Static growth comes from Pareto improvements (making markets function better)

Dynamic growth comes from the factors in the Solow model:


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Physical capital accumulation

Infrastructure: transport, airports, buildings, incentivising private investment in capital & providing effective markets for credit

Technological progress

Research & development, patents, science/technology, innovation, start-ups

Human capital accumulation

Schools, colleges, universities, vocational training

Appraisal and evaluation

Before a policy is brought in, government economists carry out an appraisal of the options:

What are the likely impacts?Who is going to benefit / who is going to lose?Is it worth doing this intervention?What is the best way of doing it?

After it is brought in, economists do an evaluation of the policy:

Is it working? Do we need to modify it?


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The economist is looking for the net present value of all the benefits minus all the costs

Cost-Benefit analysis:

Costs:Exchequer cost – what it costs the taxpayerEconomic cost – the opportunity cost to society of resources being diverted from other uses

Benefits:Additionality – the true economic benefit when you’ve taken off:Deadweight – activity that would have happened anyway but govt has now paid for it!Displacement – activity that has just taken away someone else’s market shareLeakages – benefits that go to someone you didn’t intend them to!


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Cost-Effectiveness analysis:

Set a target goal: (eg ‘provide 500 jobs’ or ‘create housing for 1000 people’)

Find out what is the cheapest option of delivering that goal, regardless of other benefits

Often used in healthcare with QALYS (Quality Adjusted Life Years)

Google “HM Treasury Green Book” for more information on this


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Other things we do

Writing evidence papers- ‘what is the evidence base on…?’

Managing surveys or statistical releases- eg English Business Survey, UK Trade Figures

Commissioning research papers- putting research out to tender and project managing it

Economic support for Ministers- written and oral Parliamentary Questions- briefings and submissions


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Career pathAssistant Economist (£26k-32k)- Rotate jobs every year in your department- After 2 years can move department- After 2 years may be opportunities for funded MSc Economic Adviser (Grade 7; £45k +)- No longer rotate jobs- Significant responsibility, lots of economics

Grade 6- Still an economist but more ‘strategic’ role

Senior Civil Service


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Application timetableApply for the Economist stream of the Analytical Fast Streams


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Registration Monday 30 September 2013

Online practice tests (7 days after registration)

Online selection tests (7 days after practice tests)

Online application form (7 days after online tests)

Economic Assessment Centre October / November 2013

Fast Stream Assessment Centre December 2013

Or apply Round 2 (opens Monday 17th February 2014)

Economic Assessment CentreGo to the EAC Open Day!


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Technical report Pre released topic: write for economists

Plain English report Same topic: write for non-economists

Short Answer Questions 10 SAQs

Interview 10 min presentation on report, 10 min follow up questions, 20 min on SAQs, 20 min on strongest topic

Non economics exercise Lots of reading: summarise a policy response (counts to FSAC not EAC)

Fast Stream Assessment Centre

Full day of exercises to test a series of competences

This is being changed this year so check the website and await the FSAC guide (pdf) for more details

The competences (from Civil Service Competency Framework) are already up on the website so start looking to get an idea

Previous exercises: interview, group exercise, written policy recommendation, oral briefing exercise


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Find out moreLook on the GES website: http://www.civilservice.gov.uk/networks/ges

Check out the HM Treasury Green Book: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/220541/green_book_complete.pdf

Read Understanding Policy Options: http://tna.europarchive.org/20071206133532/homeoffice.gov.uk/rds/pdfs06/rdsolr0606.pdf

Look on the Economy part of the ONS website: http://www.ons.gov.uk

They produce good stuff on Twitter and Facebook so worth ‘liking’

Also check out The Economics of the Welfare State (Nicholas Barr)

[email protected]


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http://www.civilservice.gov.uk/networks/ges

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/220541/green_book_complete.pdf

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/220541/green_book_complete.pdf