Research task Your musings were overheard by the CEO. The CEO was impressed by your insights and has asked that you write a critical overview of the changes to the government’s immunisation incentive scheme in Australia from an economics perspective.
Your musings were overheard by the CEO. The CEO was impressed by your insights and has asked that you write a critical overview of the changes to the government’s immunisation incentive scheme in Australia from an economics perspective.
You email your unit coordinator for Economics desperate for some help. Louisa suggests breaking your report down as follows:
1. A brief overview of immunisation rates in Australia AND the current and proposed changes to policy that links Child Care Benefit, Child Care Rebate and Family Tax Benefit to immunisation in Australia.
Hint: As an economist, we generally start by framing the problem. We also refer to this as setting the context. In this part of your essay, you need to clearly articulate what the issue is from a societal perspective. This is not simply a case of stating “I think it is a problem because …”. You need to present and interpret data on immunisation rates and note key policies that have attempted to increase immunisation rates.
2. A description of the relevant economic theory to show how the policy that increases immunisation rates could result in a socially efficient level of immunisation rates.
Hint: So what is the economic theory that underpins your economic analysis? We have been pretty focused on developing one key theory so far this semester. Remember that “X” marks the spot! In this case it is under consumption of a good that is potentially leading to a socially inefficient outcome. To correct for that, you can use an economic theory to demonstrate how increasing immunisation rates will move the market to a socially efficient level of consumption. And yes — you will be expected to include a relevant graph of the economic theory!
3. A critical analysis, informed by research, as to whether the proposed government intervention will be effective in correcting the market failure and result in an efficient level of immunisation in the community.
Hint: You are working with a word limit so you will need to be selective and concise with your arguments. Again, your analysis needs to be objective, we expect you to draw on appropriate academic literature and/or present empirical evidence to support your arguments about either the limitation of the proposed policy and suggest alternative policies that may be more effective or appropriate. To keep it manageable, Louisa has suggested your critical analysis should include:
• a brief discussion on the potential limitations of the policy in addressing issues that affect immunisation rates — e.g. asymmetric information, equality of access, etc.
• ONE policy alternative that research shows can increase immunisation rates
In your essay keep it simple — give an overview of how the policy will work and a summary of the potential strengths and weaknesses of that policy. Note, you are not required to say that the alternative policy is better than what has been proposed by the government — simply that it addresses the problem in a different way.