<p>Publicly funded healthcare and social welfare schemes typically serve redistributive functions and therefore can be considered as promoting equity (among the well-off and the poor). At the same time, these programs must be financed through taxation such as income tax that's usually distortive, thereby weighing down on efficiency.</p>

CC BY-SA 4.0
2019-11-03T23:09:48.907Z
2019-11-03T23:09:48.907Z
Herr K.
<p>What could be an example of equity-efficiency tradeoff in healthcare, social protection or defense? For environment I did think of pollution permits that can cause geographical differences in pollution. But for other sectors of government spending I do have a trouble with coming up with an example.</p>

<microeconomics><public-economics>
Equity-efficiency tradeoff examples
bajun65537
# Equity-efficiency tradeoff examples

(Asked by: username_0 on 2019-11-03)

What could be an example of equity-efficiency tradeoff in healthcare, social protection or defense? For environment I did think of pollution permits that can cause geographical differences in pollution. But for other sectors of government spending I do have a trouble with coming up with an example.

**Tags:** microeconomics, public-economics


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## 1 answers

### Answer by username_1 on 2019-11-03. Score: 3 | Accepted answer

Publicly funded healthcare and social welfare schemes typically serve redistributive functions and therefore can be considered as promoting equity (among the well-off and the poor). At the same time, these programs must be financed through taxation such as income tax that's usually distortive, thereby weighing down on efficiency.


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