Income Transfer - PAM2040 Income Distribution When should...

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PAM2040 Income Distribution
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When should the Government intervene? First Fundamental Theorem of Welfare Economics Externalities Public Goods
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How does the Government Intervene? Policy Issue 1: Poverty Does a BSP have a responsibility to provide income to people? How does the US Government provide “safety nets? What are the direct and indirect effects of these programs?
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The “Iron Triangle” Three goals of policy reform: Encourage Work Redistribute Income Lower Costs no way to do all three with cash transfer program
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The “Leaky Bucket” Three costs of income distribution Administrative costs Distortion of taxes Moral hazardd
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What does it mean to be “poor” in the US? 0 50 100 Frequency 0 50000 100000 150000 GDPpercap Countries US
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Income Inequality in US 20th 40th 60th 80th 100th 20%
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What do we care about? Relative deprivation Income Inequality Absolute deprivation People below Poverty Line? Access to services?
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This document was uploaded on 10/26/2011 for the course PAM 2040 at Cornell University (Engineering School).

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Income Transfer - PAM2040 Income Distribution When should...

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