Equity-efficiency tradeoff examples What could be an example of equity-efficiency tradeoff in healthcare, social protection or defense? For environment I did think of pollution permits that can cause geographical differences in pollution. But for other sectors of government spending I do have a trouble with coming up with an example.
Publicly funded healthcare and social welfare schemes typically serve redistributive functions and therefore can be considered as promoting equity (among the well-off and the poor). At the same time, these programs must be financed through taxation such as income tax that's usually distortive, thereby weighing down on efficiency.