ABSTRACT
Chapter 26 showed that two issues were key to the content and implementation of equity and efficiency policy: (a) whether current reality approximates better to the 'unconstrained' optimisation scenario (with flexible supply at current price levels) or the 'service-budget-constrained' optimisation (with inflexible aggregate service shares); and (b) whether the unconstrained optimisation scenario is generally attainable by British authorities. The chapter asserted that there exists circumstantial evidence of differences in costs between sectors, and argued that this made the unconstrained optimisation scenario nearer to reality and more attainable.
