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This edition retains a strong policy orientation. Although a great deal of theory and empirical evidence is discussed, their inclusion is motivated by the desire to increase understanding of intriguing policy problems, and these aspects are discussed in the context of those problems. This explicit integration of research and policy within each chapter avoids the problem frequently encountered in applied economics textbooks—that is, in such texts the theory developed in earlier chapters is often only loosely connected to the rest of the book.
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