Economic Policy Taxonomy

TL;DR

This paper introduces a comprehensive taxonomy framework for economic policies, aiming to standardize and categorize all policy tools to improve economic modeling and strategic decision-making.

Contribution

It presents a novel hierarchical taxonomy of economic policies, facilitating complete economic modeling and targeted policy strategy development.

Findings

Developed an exhaustive policy categorization tree

Enhanced the ability to build comprehensive economic models

Improved policy strategy formulation with standardized tools

Abstract

This paper proposes a framework for categorizing economic policies in a form of a tree taxonomy. The purpose of this approach is to construct an exhaustive and standardized list of actions that a governing authority has access to and can change to control an economy. This is advantageous from two perspectives: by having an exhaustive list of tools, it becomes easier to construct "complete" models (i.e., models that take in all empirical data and aim to simulate economic dynamics) of an economy and understand what the assumptions of these models are; and by knowing all available actions, economic strategies can be devised that target specific economic performance metrics with an exhaustive list of policies.