“Create a PPF for City College with a maximum of 600 training places or 300 community clinic sessions. Mark the proposed budget at 360 training places and 135 clinic sessions, and a health-priority plan at 220 training places and 220 clinic sessions.”
Die dahinterstehenden Entscheidungen verstehen.
Use measures leaders can discuss.
Make the trade-off transparent.
Focus the conversation on allocation.
Use this PPF when one budget funds two competing public services.
Häufige Fragen
Can a PPF apply to services?
Yes. The axes can represent any two outputs that use the same limited resources.
What does the proposed budget point show?
It shows one possible mix of training places and clinic sessions.
Why keep the budget fixed?
It makes the opportunity cost of reallocating existing resources easier to see.