Think exit before entry: how to anticipate the costs of abandoning an obsolete policy

Fast-changing events mean policies quickly become obsolete. But there are often high exit costs – and these are not just financial. Jintao Zhu (LSE) recommends how governments can incorporate exit costs into policymaking. In 1940, the US government collected $7 billion in tax revenue. By 1945, the figure had soared to $45 billion. The drastic ... Continued