Marginal Cost of Public Fund Effects on Social Costs and Public Health
The marginal cost of public funding (MCPF) is a key factor in resource allocation. It's also an important measure of financial stability, especially in public health. The MCPF shows how much one more unit of public spending (including taxation) changes household spending. It also shows how much it affects society's welfare and security. We can restructure the tax system to rely less on aggressive taxes. We can also add progressive taxes. These changes could reduce the MCPF and spread the tax burden across income deciles. This research, describing the many sides of this cost, talks about its impact on social costs and public health, which are less discussed. We investigated the impact of this cost on health care services. It also affects fairness in health and social costs. Researchers have proposed different methods to calculate MCPF. Osher suggested the simplest. It uses the average and median national income of countries. The cost factor is a number greater than 1. Since health projects are financed through taxes, it is necessary to multiply the project cost by MCPF. This applies to health care projects and economic evaluations. Considering the final cost can provide a more accurate estimate of budget and costs.
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