1 / 9

Adam Smith Rescues (Funding for) Emergency Services

Adam Smith Rescues (Funding for) Emergency Services. Simon Hakim, Andrew J. Buck and Erwin A. Blackstone Center for Competitive Government and Department of Economics, Temple University Philadelphia, PA 19122 January 4, 2007. Problem.

jamesmthomas
Télécharger la présentation

Adam Smith Rescues (Funding for) Emergency Services

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Adam Smith Rescues (Funding for) Emergency Services Simon Hakim, Andrew J. Buck and Erwin A. Blackstone Center for Competitive Government and Department of Economics, Temple University Philadelphia, PA 19122 January 4, 2007

  2. Problem • “According to data provided to task force by emergency responder professional associations and leading emergency response officials from around the country, America will fall approximately $98.4 billion short of meeting critical emergency responder needs over the next five years if current funding levels are maintained”, The Rudman Report

  3. Sources of Savings for emergency services • Shedding of non-public-goodscurrently provided by government • Contracting out public-goods: exposing public goods to markets

  4. Shedding of non-public-goods Goods that do not have pure public good, externalities, natural monopoly, or equity characteristics. Elimination of non-public services will generate private provision. • Police: 36 million false alarms a year, 94-99% of all burglar alarm responses are false, $50 cost per false response plus traffic accidents. 10-20% of patrol officers’ time. Other non-public services: unlocking cars, escorting funerals, checking on indiv welfare, motorist assistance, animal control, civil standby service.

  5. Fire: 2.2 million false alarms a year or 58% responses of total are false, $365-1050 cost per false response. Other non-public services: unlocking cars and homes, animal rescue, pumping water out of basements, alleviating smoke conditions in the absence of actual fire. • Ambulance: 8.5 million false alarms a year or 25% false of total, $100 cost per false response.

  6. Economic optimal solution Charge at cost, no free responses, allow private entities to compete. Verified response for burglar alarm. For ambulance-contracting out.

  7. Why isn’t the efficient solution adopted? • No player except the provider has an inherent interest in solving the problem. • The beneficiaries of public provision of a private good gain a substantial amount compared with the per capita cost to the community through taxes. • Industry devotes a substantial efforts to maintain existing “free” police responses.

  8. Annual Savings from Eliminating Non-Public and Contracting-Out Public Goods

  9. Annual Savings from Eliminating Non-Public and Contracting-Out Public Goods (Continued)

More Related