Publisher's Synopsis
Excerpt from Statistical Issues in Allocating Federal Funds and Estimation of Local Government Finances: Papers Presented at the Conference on Small-Area Statistics, American Statistical Association, Boston, Mass., August 25-26, 1976
Ideally, application of the allocation rules should be based on available accurate information. In practice this is usually not the case. The classifications and quantities used in alloca tion formulas may be subject to measurement error, and appli cation of decision rules by different individuals, or even the same individual at different times, may have different results.
This paper deals with two aspects of equity in allocation processes which are subject to error. Part I, discusses the effects of sampling error on procedures for allocation of funds to political subdivisions through formula grants. Particular atten tion is given to the issue of equity in the allocation, among political subdivisions, of a sample to be used to estimate values used in the allocation formula.
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