When Government Programs Create Inequities: A Guide to Compensation Policies

Journal of Policy Analysis and Management, Vol. 4, No. 2, pp. 178-195, Winter 1985

19 Pages Posted: 2 Jun 2011

See all articles by Burton A. Weisbrod

Burton A. Weisbrod

Northwestern University - Department of Economics; University of California, San Diego (UCSD) - Department of Economics

Joseph J. Cordes

George Washington Institute of Public Policy (GWIP)

Date Written: 1985

Abstract

When the government institutes a program thought to be useful for society as a whole, such as building a highway or controlling air pollution, those that benefit from such programs are usually quite different from those that bear its costs. Sometimes the government responds by postponing or modifying. Abstract the program, sometimes by compensating those that are bearing an inequitable share of the costs. By using familiar economic concepts, the analyst can more effectively choose between the two approaches. Applying those concepts to the case of highway construction in California, we conclude that in this instance cash compensation is clearly superior to postponement as the policy of choice.

Suggested Citation

Weisbrod, Burton A. and Cordes, Joseph J., When Government Programs Create Inequities: A Guide to Compensation Policies (1985). Journal of Policy Analysis and Management, Vol. 4, No. 2, pp. 178-195, Winter 1985, Available at SSRN: https://ssrn.com/abstract=1856636

Burton A. Weisbrod (Contact Author)

Northwestern University - Department of Economics ( email )

2003 Sheridan Road
Evanston, IL 60208
United States
847-467-1235 (Phone)
847-491-7001 (Fax)

University of California, San Diego (UCSD) - Department of Economics ( email )

9500 Gilman Drive
La Jolla, CA 92093-0508
United States

Joseph J. Cordes

George Washington Institute of Public Policy (GWIP) ( email )

805 21st Street, NW
Media and Public Affairs Building, Room 602
Washington, DC 20052
United States
202-994-5826 (Phone)
202-994-6147 (Fax)

HOME PAGE: http://www.gwu.edu/~pubpol/cordesbio.html

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
22
Abstract Views
526
PlumX Metrics