Productivities. Efficiency, and Three Policy Propositions

<p>This note applies ECCEP estimates of service productivity curves, service prices, and service utilisation, and the predictions about the consequences of achieving perfect efficiency, in the discussion of three policy propositions. It deals primarily with only two of the seventeen outputs for which productivity curves have been estimated.

<p><p><p>Section I:

<p><p><p><li>defines two dimensions of productive efficiency analysed, </li><p><p><p><li>explains and justifies in the context of reform argument the choice of three scenarios setting the framework for deducing the implications of productivities, prices and information about utilisation for what would be the best allocation of resources, and</li><p><p><p><li>relates the targeting implications of making the best use of resources to targeting strategies for investment in efficiency improvement.</li>

<p><p><p>Section II suggests what light the results throw on three policy propositions:

<p><p><p><li>allocate more to the less on the less dependent, if necessary, releasing resources by allocating less to the more dependent</li><p><p><p><li>spend less on the older community services, and</li><p><p><p><li>give higher priority to caregivers, less to users</li>