Reference no: EM132103146

Discussion

1. Trade-Offs in the Policy Process

Is there a trade-off between equity and efficiency in public policy, or can the two goals be reached simultaneously? Hyman (2014) addresses this issue of analyzing social choices and shows how utility curves are used to determine trade-offs. The utility curve concept measures the benefits received by different groups in relation to their costs. Further, Hyman (2014) defines the efficiency criterion as using resources in a way that makes it "impossible to increase the well-being of any one person without reducing the well- being of any other person" (p. 55).

Post by Day 3 an explanation for how public policies might be designed so that they are both equitable and efficient. Your explanation should include the following:

. A description of the efficiency criterion that shows how the marginal conditions for efficiency can be used to identify efficient public service delivery that is also equitable

. An explanation of how a utility-possibility curve can illustrate trade-offs between equity and efficiency

. A description of why knowing who benefits from a proposed policy and whether changes in income distribution result is important

Be sure to support your post with specific references to the Learning Resources and other peer-reviewed sources and provide full APA-formatted citations for your references.

ASSIGMENT 1

Efficiency Criterion in Policy Changes

This week you have examined the efficiency criterion in the public policy context of trade-offs between efficiency and equity. Now you will use the goals of efficiency and equity to analyze specific policy proposals. In examining the creation of public parks and medical facilities, how do the goals of equity and efficiency help you to think about these proposals?

In a 4-page paper, respond to the following topic:

For each of the following policy changes, explain why the change is or is not likely to be an improvement based on the efficiency criterion in Hyman (2014):

1.Building a park, financed by an increase in the local property tax

2. Building a park, financed by the donation of a rich philanthropist; the city acquires the land by exercising the right of eminent domain

3. Increasing medical care facilities for lung cancer, financed out of general revenues

4. Increasing medical care facilities for lung cancer, financed out of an increase in the cigarette tax

ASSIGMENT 2

Annual Budget: Revenue Sources and Expenditures

Governments provide services because the market cannot provide all that are necessary in efficient amounts. Yet any policy choice involves trade-offs between efficiency and equity because some people believe they pay more in taxes than the dollar cost of the services they receive from government while others pay less than the dollar value of the services received. For example, the person who does not have school-age children may think it inequitable to pay for public education. The person who does not ride the bus may think it inequitable to subsidize public transit. As Hyman (2014) notes, "Government provision of goods and services is justified by the belief that the marginal social benefit of the services outweighs the marginal social cost" (p. 68).

In your local government Annual Budget, find a section that summarizes revenue sources and expenditures. For example, in the San Francisco budget (2014) in this week's Learning Resources there is a section titled "Consolidated Schedule of Sources and Uses." If you use a section of this kind in your budget, you will be able to compare and contrast income and spending for the 2 years covered by your budget. Major categories of expenditure are public protection, public works, human welfare, community health, culture and recreation, and general administration. Major sources of revenue are property taxes and other local taxes, business taxes, and transfers from state and federal government.

For this Assignment, in a 2- to 3-page paper, from the Annual Budget of your local government, do the following:

. Identify the three largest areas of expenditure, e.g., public safety, social services, welfare.
. Analyze how the expenditure levels for these three areas have changed over the last 2 years.
Identify the most important revenue sources and analyze how these have changed over the last 2 years.

Note: You may need to explore your local government's website to find necessary information. For example, the City and County of San Francisco Office of the Controller's website, has a pull down menu titled "Information and Reports" that includes economic analyses and information on performance evaluations. Another pull down menu titled "SF Open Book" has a report on overall spending and revenue categories.