Impact analysis of economic policy is a subject which is gaining in- creasing interest in both theoretical and applied economic research. Two main reasons for the growing interest can be distinguished. First, the situation of the government's finances is making it more than ever necessary to assess critically the effects of the instruments used to pursue public policy goals. Secondly, because of the economic stagnation government will be increasingly appealed to for support. Impact analysis, however, is hampered by three major problems: methodological deficiencies, lack of econometric...