Abstract
Differences in reimbursement requirements among federal programs encourage unwise investment decisions by creating incentives for uneconomical design of individual programs, uneconomical use of existing facilities, uneconomical allocation of budgetary resources among program areas, and uneconomical allocation of national resources to the public sector. In addition, these differing federal subsidies have a tendency to increase the disparity among income groups. Comparison of actual and optimal reimbursement rules for water resource programs indicates that federal reimbursement policy has encouraged overinvestment in these programs and the selection of nonoptimal techniques of production. Analysis of the equity impact of federal cost-sharing policies suggests that subsidies for many federal programs have had an unfavorable effect on the distribution of income.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.