Opportunity NYC programme

Later in the term we'll learn about Market Failure, in particular where external benefits exist or where information is imperfect. We'll learn about merit goods - goods deemed to be socially desirable by the government, largely because they yield positive externalities, or benefits to third parties. Merit goods include healthcare and education.

Related to merit goods is a privately funded scheme in New York City (NYC) called the Opportunity NYC programme. This programme rewards parents and children with cash for doing such things as getting proper health check ups (healthcare) and passing school exams (education). It seems a good way to spur longer-term thinking that benefits both the individual and society, i.e. it encourages parents and children to consume merit goods.

Does it work? Blacks, who make up nearly 15% of NYC's student body, earn fewer than 4% of the top marks in advanced-placement exams (for university-bound students). But a similar scheme in Dallas, Texas has managed to increase the number getting top scores by 30%.

For more details on the Opportunity NYC programme, read the Economist article:

'When bribery pays'
http://www.economist.com/finance/displaystory.cfm?story_id=10854937