Benefit-Cost Analysis of Data Used to Allocate Funds

0 Introduction.- 1 Loss Function and Benefit Measurement.- §1.0 Introduction.- 1.1 Utility and Social Welfare.- 1.2 Equity.- 1.3 A Simple Loss Function.- Errors in Allocation.- 1.4 Estimating the Parameters of the Loss Function L(f?,??) for GRS.- 1.5 Fisher-Consistency and Other Properties of the Loss Function L(f?,??).- 1.6 More General Loss Functions: LH(f?,??) , Lw(f?,??).- 1.7 Exponential Loss Functions.- 2 The Delta Method.- §2.0 Outline.- 2.1 Notation.- 2.2 Description of the Delta Method.- 2.3 Applicability of the Delta Method to GRS.- 2.4 Application of the Delta Method to Calculating Expected Loss.- 3 Data Used in General Revenue Sharing.- §3.1 Introduction.- 3.2 Population (state level).- 3.3 Urbanized Population.- 3.4 Population (substate level).- 3.5 Total Money Income, Per Capita Income (state level).- 3.6 Per Capita Income (substate level).- 3.7 Personal Income.- 3.8 Net State and Local Taxes.- 3.9 State Individual Income Taxes.- 3.10 Federal Individual Income Tax Liabilities.- 3.11 Income Tax Amount (state level).- 3.12 Adjusted Taxes (substate level).- 3.13 Intergovernmental Transfers (substate level).- 3.14 Interrelationships Among State- level Data Elements.- 3.15 Interrelationships Among Substate Data Elements.- 3.16 Outline-Symbol Glossary.- 4 Interstate Allocation in GRS §4.1 Introduction 151.- 4.2 Notation.- 4.3 Conclusions.- 4.4 Assumptions and Degrees of Approximation.- 4.5 Derivations and Proofs.- 5 Intrastate Allocations in GRS.- §5.1 Overview.- 5.2 Determination of Substate Allocations.- 5.3 Notation.- 5.4 Assumptions and Degrees of Approximations.- 5.5 Conclusions.- 6 Computations and Analyses.- §6.1 Introduction.- 6.2 Errors in Allocation to States.- 6.3 Substate Errors in Allocation.- 6.4 Benefit Analysis.- 6.5Summary of Findings.- 7 Policy Perspectives and Recommendations.- §7.0 Introduction and Summary.- 7.1 Redundancy cf Allocation Formulas.- 7.2 Data Burdens Imposed by Legislation.- 7.3 Minimizing Large Errors in Allocation.- 7.4 Uniform Biases, Non-uniform Variances.- 7.5 Adjusting for Undercoverage or Other Suspected Biases.- 7.6 Improving the Coverage of the Decennial Census.- 7.7 State Errors vs. Substate Errors.- 7.8 Allocation Formulas as Approximations.- 7.9 Other Uses of Data.- Appendix A Tables of Biases in Data.- Appendix B Determination of General Revenue Sharing Allocations.- Technical Appendix.