NAME: JERRY DIMLA CRUZ

Policy Analysis: Concepts and Practice by David Weimer & Aidan Vining

Guide Question:

1. Under what conditions is the market for vaccination against a communicable disease likely to
be inefficient? (Chapter 5, #3)
The market for vaccination against communicable disease is likely to be inefficient
under certain conditions. One of the key conditions is that the disease is a public health
concern, meaning that its spread can have significant negative externalities for society as a
whole. In such cases, the private market may not provide enough vaccinations to achieve the
socially optimal level of vaccination coverage.

Another condition is that vaccination may not be fully effective, meaning that even
vaccinated individuals may still be at risk of contracting and spreading the disease. This can
create a situation where individuals may choose not to get vaccinated because they perceive
the risks to be greater than the benefits, even if getting vaccinated would be socially beneficial.
This is known as the "free-rider" problem.

Furthermore, if the cost of vaccination is high relative to the expected benefits,

individuals may choose not to get vaccinated, even if doing so would be socially beneficial. In
this case, the market may not provide enough vaccinations to achieve the socially optimal level
of vaccination coverage.

Overall, the market for vaccination against communicable disease is likely to be

inefficient when there are externalities, imperfect information, or high costs that prevent
individuals from getting vaccinated, even if doing so would be socially beneficial. To address
these inefficiencies, governments may need to intervene by providing subsidies, mandates, or
other incentives for vaccination.
2. The past twenty years have witnessed considerable concern in the United States (instead of
the US, consider the Philippine public schooling system) about the quality of public schooling,
particularly in urban areas. Apply government failure concepts to various aspects of the public
education problem.

Problems Inherent in Democracy: One problem inherent in democratic systems is the

problem of majority rule. In the context of public education in the Philippines, this can mean
that policies are designed to cater to the interests of the majority, rather than to the needs of
minority groups or to the public good. For example, policies may be designed to cater to the
interests of powerful teacher unions or political constituencies, rather than to promote
educational excellence.

Another problem inherent in democracy is the problem of voter ignorance. In the context
of public education in the Philippines, this can mean that voters may not have the necessary
information to make informed decisions about education policy. This can lead to policies that
are not optimal for society as a whole, such as policies that prioritize short-term gains over
long-term educational excellence.

Problems Inherent in Representative Government: One problem inherent in

representative government is the problem of agency costs. Elected officials may not always act
in the best interest of their constituents, but rather in their self-interest. In the context of public
education in the Philippines, this can mean that politicians may be more interested in
appeasing powerful teacher unions or other special interests than in promoting educational
excellence.

Another problem inherent in representative government is the problem of capture.

Special interest groups, such as teacher unions or textbook publishers, may have more
influence over elected officials than the general public, leading to policies that benefit these
groups at the expense of the public good.

Problems Inherent in Bureaucratic Supply: One problem inherent in bureaucratic supply

is the problem of bureaucratic inefficiency. Bureaucracies may be slow to adapt to changing
circumstances or to implement policies effectively, leading to inefficiencies in the education
 system. For example, bureaucratic red tape may make it difficult to fire underperforming
teachers or implement new educational programs.

Another problem inherent in bureaucratic supply is the problem of bureaucratic capture.

Bureaucracies may be subject to capture by special interest groups, such as teacher unions or
textbook publishers, leading to policies that benefit these groups at the expense of the public
good.

Problems Inherent in Decentralization: One problem inherent in decentralization is the

problem of coordination. Decentralized systems may have difficulty coordinating across
different levels of government or different regions, leading to inefficiencies in the education
system. For example, different regions may have different educational standards or curricula,
leading to unequal outcomes across the country.

Another problem inherent in decentralization is the problem of inequality. Decentralized

systems may lead to unequal outcomes across different regions or populations, particularly if
some regions or populations have less resources or political power than others. In the context
of public education in the Philippines, this can mean that students in urban areas may have
access to better educational resources than students in rural areas, leading to unequal
outcomes across the country.
3. Your state or province is concerned that too few children are being immunized against
childhood illnesses. What are some of the generic policy alternatives that could be adopted to
increase immunization rates?
Using Subsidies and Taxes to Alter Incentives: One way to increase immunization rates
is to use subsidies and taxes to alter incentives. For example, the government could provide
subsidies to healthcare providers to cover the cost of administering vaccines or provide tax
credits to parents who get their children vaccinated. On the other hand, the government could
also impose taxes or penalties on parents who choose not to vaccinate their children to
discourage this behavior.

Establishing Rules: Establishing rules can also be used to increase immunization rates.
For example, the government could require children to be vaccinated for certain diseases
before they can attend school or daycare. Rules could also be established to ensure that
 healthcare providers provide accurate information about the benefits and risks of vaccination to
parents.

Supplying Goods through Nonmarket Mechanisms: Another way to increase

immunization rates is to supply vaccines directly to individuals through nonmarket
mechanisms. This could involve setting up public clinics or partnering with private healthcare
providers to offer free or low-cost vaccines to children.

Providing Education and Information: Providing education and information to parents

about the benefits and risks of vaccination can also increase immunization rates. This could
involve public education campaigns, informational materials sent to parents, or outreach to
communities to address concerns about vaccination.

Providing Insurance and Cushions: Finally, providing insurance and cushions can also
increase immunization rates by reducing the financial barriers to vaccination. This could
involve providing insurance coverage for vaccines or providing subsidies to cover the cost of
vaccines for families who cannot afford them.

4. Consider a regulation that would ban the use of cell phones while driving automobiles. List the
effects of the regulation and classify them as costs and benefits.

Benefits:

 Reduced risk of accidents: One of the main benefits of a ban on cell phone use while
driving is a reduced risk of accidents. Distracted driving is a significant cause of
accidents, and cell phone use while driving has been shown to increase the risk of
accidents. By banning cell phone use while driving, there would be fewer accidents and
a corresponding reduction in injuries and fatalities.
 Increased focus on driving: Banning cell phone use while driving could also lead to an
increased focus on driving. Drivers would be less distracted and more attentive to the
road, which could lead to improved driving performance and fewer accidents.
  Improved public safety: A reduction in accidents and injuries would improve public
safety, which could have a positive impact on society as a whole.

Costs:

 Enforcement costs: One of the main costs of a ban on cell phone use while driving is
enforcement costs. Police officers would need to enforce the ban, which would require
additional resources and personnel.
 Reduced convenience: For some drivers, a ban on cell phone use while driving could be
seen as an inconvenience. Drivers who need to make important phone calls while on
the road may need to find alternative ways to communicate, which could be more time-
consuming or less convenient.
 Potential economic costs: There could be potential economic costs associated with a
ban on cell phone use while driving. For example, if drivers are unable to take important
phone calls while on the road, this could lead to lost productivity or missed business
opportunities.