5 Policy application . Suppose you are in charge of grants from state to local government in order to reduce inequality in the amount of resources that counties have to provide certain basic services such as roads, sheriff’s offi ce, emergency medical services, libraries, and health clinics. Your state has a few large urban areas with some poverty but also a lot of taxable commercial and industrial wealth, prosperous suburban areas, and a lot of rural areas with limited job opportunities and low population density. It is your job to come up with a distribution formula for state aid to counties. What factors might you include in your formula? Why?