Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/192540 
Year of Publication: 
2008
Series/Report no.: 
Discussion Papers No. 558
Publisher: 
Statistics Norway, Research Department, Oslo
Abstract: 
When private goods are publicly provided, government authorities have to determine the distribution of services on recipients. In this paper, the public service provider is assumed to maximize utility defined over service supply to different target groups, given a budget constraint. The production technology is target group specific and depends on the ability of each target group to produce service outcomes. Three benchmark allocation principles are identified: equality of treatment (ET), equality of outcome (EO) and equality of marginal cost (EMC). These principles can be considered to be consistent with special cases of a public preference model, which allows for compromises between different allocation principles. The condition of technological dominance implies that there is a clear-cut equity-productivity trade-off, whereas violations of this condition may reduce the significance of the trade-off.
Subjects: 
treatment targeting
technological dominance
equity-productivity trade-off
publicly provided private goods
in-kind transfers
JEL: 
H42
Document Type: 
Working Paper

Files in This Item:
File
Size
258.92 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.