In Chapters 12 to 16, we will use the framework we have discussed in this chapter to analyze several diff erent government programs. Before reading those analyses, see if you can answer the following questions for each program:
a. What were the original sources of demand for the program? What perceived need was it intended to address?
b. What are the market failures that gave rise to the program?

c. What are the possible forms of government intervention? Are there particular design features that have had, or currently have, an important impact on the program's eff ectiveness? How do private sector responses weaken, or reinforce, the intended eff ects of the program? What is the true incidence of the program?
d. What are the major effi ciency consequences of the program?
e. Does the program entail any eff ective redistribution of income?
f. Are there important instances of trade-off s between equity and effi ciency in the program's design?
g. What are some alternatives for meeting the program's objectives? To what extent might they do a better job, for example, by reducing distortions and increasing the equity of the programs?

h. How has the political process affected the
nature of the present program?