{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

IBE316-5-1 - IBE 316 Economic Policy Stiglitz Economics of...

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
IBE 316 Economic Policy Stiglitz: Economics of the Public Sector Chapter 5: E¢ ciency and Equity (part 1) Keisuke OTSU Sophia University FLA Spring 2008 OTSU (Sophia University FLA) IBE 316 Spring 2008 1 / 14
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Overview Chapter 3 describes Pareto e¢ ciency Chapter 4 explains how and why the government intervenes in the market when the market is ine¢ cient even when the market is e¢ cient Chapter 5 explains the trade-o/ between e¢ ciency and equity OTSU (Sophia University FLA) IBE 316 Spring 2008 2 ± 14
Background image of page 2
Overview Focus Questions 1 How do economists think systematically about how to make social choices when there are trade-o/s between the welfare of individuals? 2 How do economists think systematically about the trade-o/s between e¢ ciency and inequality? 3 As a practical matter, how do governments translate these general principles into a form which can actually be used in decision making? OTSU (Sophia University FLA) IBE 316 Spring 2008 3 ± 14
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
E¢ ciency and Distribution Trade-o/s Trade-o/ between e¢ ciency and equity: redistribution of wealth in order to reduce inequality is costly Two debates on the trade-o/ How much e¢ ciency do we have to give up in order to achieve equality? Which is more important; e¢ ciency or equity? OTSU (Sophia University FLA) IBE 316 Spring 2008 4 ± 14
Background image of page 4
Analyzing Social Choices The social choice should be made by maximizing the social welfare subject to the opportunity set opportunity set: utility possibility frontier social welfare: social indi/erence curve OTSU (Sophia University FLA) IBE 316 Spring 2008 5 ± 14
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Analyzing Social Choices Determining the Trade-o/
Background image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 14

IBE316-5-1 - IBE 316 Economic Policy Stiglitz Economics of...

This preview shows document pages 1 - 7. Sign up to view the full document.

View Full Document Right Arrow Icon bookmark
Ask a homework question - tutors are online