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Efficient Distribution of Resources Through Three Levels of Government

Author

Listed:
  • R. G. Cassidy

    (Dalhousie University, Halifax, Nova Scotia)

  • M. J. L. Kirby

    (Dalhousie University, Halifax, Nova Scotia)

  • W. M. Raike

    (University of Texas, Austin)

Abstract

This paper presents a model for determining how a central government can most efficiently allocate resources among other levels of government. The model explicitly includes the fact that lower levels of government can make independent decisions once they have been given resources by the central government. A key feature of the model is the mathematical formulation of the central government's objective of distributing resources efficiently, while at the same time being as fair as possible to all those receiving allocations. An algorithm for solving the model is presented along with a numerical example.

Suggested Citation

  • R. G. Cassidy & M. J. L. Kirby & W. M. Raike, 1971. "Efficient Distribution of Resources Through Three Levels of Government," Management Science, INFORMS, vol. 17(8), pages 462-473, April.
    • Handle: RePEc:inm:ormnsc:v:17:y:1971:i:8:p:b462-b473
    DOI: 10.1287/mnsc.17.8.B462
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    Cited by:

    1. Song, Malin & Xie, Qianjiao & Tan, Kim Hua & Wang, Jianlin, 2020. "A fair distribution and transfer mechanism of forest tourism benefits in China," China Economic Review, Elsevier, vol. 63(C).
    2. Polyxeni-Margarita Kleniati & Claire Adjiman, 2014. "Branch-and-Sandwich: a deterministic global optimization algorithm for optimistic bilevel programming problems. Part I: Theoretical development," Journal of Global Optimization, Springer, vol. 60(3), pages 425-458, November.
    3. Liu, Yi-Hsin & Spencer, Thomas H., 1995. "Solving a bilevel linear program when the inner decision maker controls few variables," European Journal of Operational Research, Elsevier, vol. 81(3), pages 644-651, March.
    4. Mathur, Kanchan & Puri, M. C., 1995. "A bilevel bottleneck programming problem," European Journal of Operational Research, Elsevier, vol. 86(2), pages 337-344, October.
    5. Abay Molla Kassa & Semu Mitiku Kassa, 2017. "Deterministic solution approach for some classes of nonlinear multilevel programs with multiple followers," Journal of Global Optimization, Springer, vol. 68(4), pages 729-747, August.
    6. Bo Zeng, 2020. "A Practical Scheme to Compute the Pessimistic Bilevel Optimization Problem," INFORMS Journal on Computing, INFORMS, vol. 32(4), pages 1128-1142, October.
    7. Konstantinos Ziliaskopoulos & Konstantinos Papalamprou, 2022. "A Bilevel Linear Programming Model for Developing a Subsidy Policy to Minimize the Environmental Impact of the Agricultural Sector," Sustainability, MDPI, vol. 14(13), pages 1-10, June.

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