A theory of policy advice

This article analyzes a model of the policy decision process in ministerial governments. A spending minister and a finance minister are involved in ma king a decision concerning a public project. The two ministers have partial ly conflicting preferences. Policy decisions are made in two stages. In the first stage the spending minister consults a technical expert to obtain in formation about the technical consequences of the project. If the technical consequences are favourable, in the second stage the finance minister cons ults a financial expert to obtain information about the financial consequen ces. The finance minister can veto a proposal for undertaking the project. This article illustrates the consequences of specialization for information transmission. A drawback of specialization is that projects are evaluated on the basis of their individual consequences rather than on the basis of t heir total consequences.