Question

Efficiency and equity are two of the most commonly used criteria in the design and evaluation of public policy.

a) Using these criteria, and taking into account that we are living in a country with a steadily aging population, discuss how you would go about deciding between the following three policy options: (12.5 marks)

• A Pay As You Go (PAYGO) superannuation scheme.

• A Save As You Go (SAYGO) funded expansion of the current NZ Superannuation Scheme, holding the entitlement age for NZ Superannuation constant.

• A Save As You Go (SAYGO) funded expansion of the current NZ Superannuation Scheme, complemented with an increase in the age of entitlement in line with increases in longevity.

Answer 1

Equity means the fairness or justice of in all sectors mainly policies effects and distribution to all concerns in population. And also in the case of public policy in an efficient manner that also an importent to an public policy.

In the scheme like PAyGO and SAYGO etcc... Lead to the policies which part of public improvement or benefit to the public.
As an evluational base of these two scheme like Pay as you go it's a type of superannuation scheme and SAYGO its also an funded for the economy.These two are zero based saving rate and which is both are retirement and pension scheme..
-- Both are efficient in retirement age of individuals.
--- mostly directed to help to reduction in tax .
--- Also focus on the part of benefit in the case of an insurance.
--- SAYGO has capital accumulation which is more benefit.
--- PAyGO has no accumalation of capital.
The SAYGO two type like one is holding the entitlement age for NZ superannuation constant and Next one is complemented with an increase in the age of entitlement in line with increases longevity.