Income targeting is useful for controlling fiscal costs, but ultimately has more to do with the allocation of resources rather than improvement in the way a service is delivered. Evidence has been growing that some types of spending can be tied to improved outcomes years later. For example, there is significant evidence that early childhood education improves school performance, which in turn has been strongly linked to higher employment rates and income in adulthood. For governments, this means more tax and lower social security spending.
The idea of early investments that produce positive fiscal impacts later has a natural appeal. Third, there are opportunities to innovate in how services are delivered.
While there can be complexity in designing these bonds, they can offer private investment in social sector services, risk-sharing of outcomes, and disciplined measurement of the effectiveness of a program.
Australia has one of the most sophisticated outcomes-based payment frameworks in the world for employment outcomes. Job seekers with work requirements are referred to third-party employment service providers. There are separate services for able-bodied job seekers and those with disabilities who may have part-time work requirements depending on their assessed capacity.
A large proportion of revenue for these providers is outcome-based; they receive government payments when they place job seekers in employment. These outcome payments are structured to improve longer-term outcomes:. Public housing is particularly amenable to long-range analysis, since durations in housing tend to be long and ongoing costs high. The New Zealand investment approach to social housing demonstrates some of the types of analysis that are possible Taylor Fry, Policing, courts and corrections can all benefit from analytics and long-term predictions.
For courts, the progression of a case through the court system can be predicted in ways that courtrooms are used more efficiently. For corrections, prediction models of recidivism are already used in many jurisdictions internationally to help make parole decisions.
More broadly, criminal offending is highly concentrated amongst a small fraction of the population. Identification of these repeat offenders, particularly those predicted to be at high risk of future offending, enables better and earlier support, such as mental health or substance abuse assistance. Again, such programs are designed with the goal of improving outcomes and reducing future justice sector costs. Government service delivery covers a wide range of programs with different challenges and different levels of maturity in their use of data and prediction.
However, there is a clear trend towards sophisticated analysis to enable these services to be delivered better. Data and models will play an increasingly important part in how programs are targeted, measured and assessed for effectiveness. Hugh is a consulting actuary at Taylor Fry. You must be logged in to post a comment. Sign in or register. The simple economics of machine intelligence. Harvard Business Review, Social Housing in NSW: Social psychiatry and psychiatric epidemiology, 49 4 , Thus, call for our help, when you do not have the confidence of writing a custom paper - just order write my paper for me.
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The winning essay 'Modern government service delivery' by Hugh Miller was singled out for its clear communication, logical structure and innovative approach to a growing issue for governments – how to deliver important services within ever tightening budgets. Background and recent trends.
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