Formula Funding of Public Services (Routledge Studies in Business Organizations and Networks)

The use of formulae has become widespread in recent years across most developed countries. In the UK, a conservative estimate is that annually £150 billion of public service expenditure is distributed using formulae, in services such as health care, local government, social security and higher education. This book offers a comprehensive introduction to the theory and practice underlying the use of such formulae as a basis for funding public services. The philosophy, design and economic consequences of funding formulae have become key policy issues worldwide. However, till now, there has been no text which brings together the economic, statistical and political issues underlying formula funding. This key book fills that gap. Written by a leading international expert on the design of funding formulae, this important book includes empirical evidence from a range of countries and will be a valuable resource for all those involved in this field. Book Cover......Page 1 Half-Title......Page 2 Series-Title......Page 3 Title......Page 6 Copyright......Page 7 Contents......Page 8 Figures......Page 11 Tables......Page 12 Boxes......Page 13 Preface......Page 14 Acknowledgements......Page 16 1 Setting the scene......Page 18 2 Formula funding within a public finance framework......Page 34 3 The elements of formula funding......Page 56 4 Formula funding: a production function perspective......Page 77 5 Empirical methods......Page 91 6 Budgetary risk and formula funding......Page 117 7 Paying for quality: The case of UK general practitioners......Page 134 8 The political economy of formula funding......Page 145 9 Concluding comments......Page 160 Technical appendix A: Some mathematics of risk pooling......Page 171 Technical appendix B: Calculating measures of local health care supply......Page 175 References......Page 178 Index......Page 187 "Peter C. Smith presents a comprehensive introduction to the theory and practice underlying the use of formulae as a basis for funding public services. The book discusses the objectives of public finance systems, and the role of formulae funding within those systems, as well as introducing a general economic model with which to analyse the formula funding problem."--Résumé de l'éditeur "Peter C. Smith presents a comprehensive introduction to the theory and practice underlying the use of formulae as a basis for funding public services. The book discusses the objectives of public finance systems, and the role of formulae funding within those systems, as well as introducing a general economic model with which to analyse the formula funding problem."--Jacket Presents a comprehensive introduction to the theory and practice underlying the use of formulae as a basis for funding public services. Also discusses the objectives of public finance systems, and the role of formulae funding within those systems, as well as introducing a general economic model with which to analyse the formula funding problem

Written by a leading international expert, and including international empirical evidence, this important book offers a comprehensive introduction to the theory and practice underlying the use of formulae as a basis for funding public services.