Formula Funding of Public Services: An Economic Analysis
Formula Funding of Public Services: An Economic Analysis
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公共服务的公式资助:经济分析
DOI:
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发表时间:
2003
期刊:
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通讯作者:
Peter C. Smith
中科院分区:
文献类型:
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作者:
Peter C. Smith
This paper discusses the economic implications of distributing funds for devolved public services using mechanical formulae. The rationale for using such methods is that they will contribute to the increased efficiency and equity of public services. By acting as arbiters in complex bargaining situations, they also serve important political objectives. The principles of formula funding are examined from an economic perspective, using a production-function approach. As well as yielding major benefits, formula funding has the potential for introducing perverse incentives and risk-avoidance behaviour, particularly among smaller units such as schools and general practices. Strategies for avoiding adverse outcomes are discussed, and the broader political context within which formula funding operates is examined. The paper ends with an assessment of the priorities for future developments in formula funding. Copyright 2003, Oxford University Press.