Begun in 1965, federal transfers to states to assist in providing health care for poor. The...

 

Transcribed Image Text:

Begun in 1965, federal transfers to states to assist in providing health care for poor. The federal aid is a matching grant(what is the economic rationale for that?) A j = mjEj Where A j is aid per capita and Ej is state expenditure per capita and m j * =(1-0.45 (Vj 2/V nat 2)) Vj = per capita income for the jth state V nat = per capita income for the nation With m j = 0.5 if mj* < 0.5 m j = m j * if 0.5< mj* < 0.83 m j = 0.83 if mj* > 0.83 Provide 3 critiques of this formula Begun in 1965, federal transfers to states to assist in providing health care for poor. The federal aid is a matching grant(what is the economic rationale for that?) A j = mjEj Where A j is aid per capita and Ej is state expenditure per capita and m j * =(1-0.45 (Vj 2/V nat 2)) Vj = per capita income for the jth state V nat = per capita income for the nation With m j = 0.5 if mj* < 0.5 m j = m j * if 0.5< mj* < 0.83 m j = 0.83 if mj* > 0.83 Provide 3 critiques of this formula

Answer rating: 100% (QA)

ANSWERS 1 One critique of this formula is that it does not account for ... View the full answer