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CAPÍTULO IV: MARCO PROPOSITORIO

4.2 PROPUESTA DE AUDITORÍA

4.2.3 FASE III: Ejecución

4.2.3.1 Hallazgos

It should be noted that in some circles the concept known

as target efficiency would be called effectiveness.

However, as target efficiency is a recognised term in

social security, it will be retained here.

Roter (1975) discusses the need to tackle the problem of

overall benefit efficiency, defined as the extent to

which the actual implementation of a programme meets 'the

original targets conceptualized by policy-makers'. For

this purpose two elements of benefit efficiency are

identified. Target efficiency - 'the degree of

discrepancy between eligibility requirements as formally

specified in programme regulations and the original

targets or objectives which prompted the setting up of a

programme' - and operational efficiency, the outcomes of

actual programme implementation compared with the said

eligibility requirements. Roter explains the trade-off

namely that increased target efficiency generally

requires more complex operational rules and regulations

leading to an increase in errors and a decrease in

operational efficency and ultimately a breakdown in

implementation with ad hoc rules being substituted at the

local level and a greater mismatch between policy as

analysed and policy as implemented. In essence an attempt

to improve the equity of the benefit has a trade-off in

operational efficiency which may have inequitable

consequences.

For determining target efficiency Roter suggests a data

set needs to be based either on a population census or a

representative sample of the general population, and for

operational efficiency 'a broad data base in which both

eligible persons and non-recipients are included with a

known probability so that both groups can be identified'.

It may help to understand the populations which need to

be identified by considering the following diagram

Figure 5.1 The Various Populations of Analysis in Benefit Evaluation Studies Recipient Population Eligible Population f b d Target Population

Clearly for a perfectly efficient benefit these three populations would coincide so that one policy objective would be to maximise (a) as a proportion of the union of the above population s e t s . The other subsets in the diagram can be explained as follows.

b - manifestation of non-take-up and operational errors c - 'two wrongs make a right', rules do not define as

originally intended but are incorrectly applied giving desired outcome

d - rules fail to embrace target e - rules fail to exclude non-target

f - rules fail to exclude non-target but benefits fail to reach their eligible population either through

operational error or non-take-up

g - administrative error and fraudulent claims.

(a) + (c)

(a) + (b) + (c) + (d)

that is the ratio of the target population who receive

benefits to the total target population, and a measure of

inefficiency would be

(b) + (d)_______ ,

(a) + (b) + (c) + (d)

that is the proportion of those who do not receive a

benefit which was intended for them.

If these were considered to be acceptable definitions of

efficiency (a point taken up later in this sub-section),

assuming that benefit receipt can be regarded as a

success irrespective of whether it is a by-product of

misapplication of the rules and not considering the

actual level of benefit received, then this requires the

identification of two populations for any given benefit -

namely the recipients and the target.

For an existing benefit the identification of the

recipient population is fundamental to any comparison

with alternatives. To identify the target population of a

benefit requires an explicit definition of the objectives

of that benefit and this may well be difficult to

establish - the longer the scheme has been in existence

the harder it is likely to be. To estimate the recipient

population of a proposed benefit requires an

take-up and administrative errors vary between benefits.

If such a model could be developed then the basic output

from a policy evaluation exercise, which would normally

be estimated on the basis of an approximation of the

eligible population, could be used to transform the

expected distribution of benefits amongst the eligible

population into that for the recipient population.

Roter lists the factors which are generally acknowledged

as leading to increased take-up as being the promotion of

a more appealing service through advertising, the

reduction of policing methods which can cause

embarrassment to potential claimants and stigmatisation

of the service, and the reduction of the cost of the

service to potential claimants in terms of expense and

effort relative to its value.

The Supplementary Benefits Commission (1978) found strong

evidence that the proportion of sick and unemployed

receiving their title to Supplementary Benefit rose as

the length of their PIE extended. Moreover about

two-thirds of those with an unclaimed title to benefit

were living in households which had combined incomes

above the Supplementary Benefit level.

Holdaway and Partridge (1981) report that a Delphi study

involving eight bocal Office managers revealed benefit

complexity being defined as ' the number of different

distinguishable operations through which a claim must

pass'. Other factors frequently proposed as having an

influence on error rates are the number of claimants

relative to the number of staff, the quality of Local

Office staff and the amount of training which they

receive and the level of staff turnover.

If it was felt unacceptable to assume the receipt of

benefit to be a success irrespective of whether the

amount of benefit received was correct then subsets (a)

and (c) could have the additional condition imposed upon

them of ' received within x% of the correct amount of

benefit'. Those people excluded as a result would be

added into subsets (b) and (d) respectively.

There is, then, a need for quantitative research into the

interaction between benefit complexity and operational

efficiency. This would have two main objectives. Firstly

to establish a better understanding of how proposed

policies will work in practice rather than theory. If it

is the case that schemes with simpler rules are more

faithfully implemented than schemes with more complex

rules then a direct comparison of results of evaluation

studies based on eligible populations rather than

potential recipient populations will be deficient.

population.

If this model could then be extended in both directions

it may also be possible to relate increased benefit

complexity to attempts to improve equity in the

eligibility rules, and to relate operational efficiency

to administrative costs. This would then enable analyses

of benefit policy alternatives to include a consideration

of their implications for the cost of administering them.

This has not been feasible in the past and yet whilst

National Insurance benefits cost around 4% of their value

in benefit payments to administer the corresponding

figure for Supplementary Benefits is around 17%. Nobody

would argue that to decrease the cost of administering

the benefit system is undesirable - whether such savings

should be used to enable an improvement in the quality of

service or to save on running costs may be a different

matter.

This is an area where the OR modelling approach could be

particularly valuable and could be a first important step

towards relating operational problems and policy making

more closely. To this end this subject will be addressed

again in Chapter 9.

The suitability of Roter's definition of benefit

efficiency could be questioned by policy makers.

instance, focus on the sub-populations e, f, and g. The

important point to recognise for the moment, however, is

that all these various sub-populations ought to be

considered in benefit evaluation studies. If such groups

are to be enumerated then clearly the data base for the

information system needs to cover the general population

or else not even existing benefits can be properly

evaluated.

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