Editing Policy (section)

===Unintended===
Policies frequently have side effects or [[unintended consequences]]. Because the environments that policies seek to influence or manipulate are typically [[complex adaptive systems]] (e.g. governments, societies, large companies), making a policy change can have [[counterintuitive]] results. For example, a government may make a policy decision to raise taxes, in hopes of increasing overall tax revenue. Depending on the size of the tax increase, this may have the overall effect of reducing tax revenue by causing [[capital flight]] or by creating a rate so high that citizens are deterred from earning the money that is taxed.{{efn|For more information on the effect of tax policy on state revenues, see [[Laffer curve]].}}<ref>{{cite journal |last1=Lai |first1=Yu-Bong |title=Capital Tax Competition in the Presence of Rent-Shifting Incentives |journal=經濟研究 (Taipei Economic Inquiry) |date=2006 |volume=42 |issue=1 |pages=1–24 |url=https://econ.ntpu.edu.tw/storage/files/XDE6sAQiG79r9zqpMgAp4N2Zpi25egcnSHgXzyIR.pdf |access-date=7 June 2023}}</ref>

The policy formulation process theoretically includes an attempt to assess as many areas of potential policy impact as possible, to lessen the chances that a given policy will have unexpected or unintended consequences.<ref>{{Cite journal|last1=Deleon|first1=Peter|last2=Steelman|first2=Toddi A.|date=2001|title=Making public policy programs effective and relevant: The role of the policy sciences|journal=Journal of Policy Analysis and Management|volume=20|issue=1|pages=163–171|doi=10.1002/1520-6688(200124)20:1<163::aid-pam2011>3.0.co;2-w|issn=0276-8739}}</ref>