Part 3 of detailed summary of EC1002 - Introduction to Economics, based on the textbook 'Economics' by Begg, Fischer, Vernasca and Dornbusch (11th edition). Beginner level, for introductory economics course. Part 3 includes chapters 13-14, namely welfare economics and introduction to government spe...
EC1002 Introduction to Economics - Part 4: Macroeconomics
EC1002 Introduction to Economics - Part 2: Positive Microeconomics
EC1002 Introduction to Economics - Part 1: Introduction
Todos para este libro de texto (3)
Escuela, estudio y materia
University of London
EC1002 Introduction to Economics (EC1002)
Todos documentos para esta materia (4)
4
reseñas
Por: jilkomservis_ed • 4 año hace
Por: owlg • 5 año hace
Por: imtiyazstudent • 5 año hace
Por: xinfifteen • 5 año hace
Vendedor
Seguir
mreducation
Comentarios recibidos
Vista previa del contenido
INTRODUCTION TO
ECONOMICS
- Part 3: Welfare Economics -
Good luck studying!
short manual:
- includes a graph
- includes a schema/diagram
- includes an introduction
- includes additional information that
is not in the main textbook updated: 30/12/2017
, CONTENTS
CHAPTER 13: WELFARE ECONOMICS
13.1. Equity and efficiency ………………………………….……………………………….. 1
13.2. Efficiency - let’s learn this! ………………………………….………………………. 2
13.3. First and second theorems of welfare economics ……………………….. 3
13.4. The Edgeworth box ………………………………….………………………………….. 4
13.5. Distortionary taxation ………………………………….……………………………… 5
13.6. Market failure ………………………………….…………………………………………. 6
13.7. Externalities
13.7.1. Production and consumption externalities ……………………. 7
13.7.2. Property rights and Couse theorem ………………………………. 8
13.8. Environmental issues ………………………………….………………………………. 9
13.9. The economics of climate change ……………………………………………….. 10
13.10. Forward and contingent markets ………………………………………………… 11
13.11. Quality, health and safety ………………………………….………………………… 12
CHAPTER 14: GOVERNMENT SPENDING AND REVENUE
14.0. Introduction to government spending and taxation ……………………. 13
14.1. Government spending and taxation ……………………………………………. 14
14.2. Government in the market economy ………………………………………….. 15
14.3. Types of income distribution and Gini coefficient ……………………….. 17
14.4. The principles of taxation ………………………………….………………………… 18
14.5. Pigouvian tax and subsidy ………………………………….………………………… 19
14.6. Supply-side economics ………………………………….…………………………….. 20
, 13.1. Equity and efficiency
WHAT IS WELFARE ECONOMICS?
• it deals with normative issues and assesses how well the economy works
o ALLOCATIVE EFFICIENCY getting the most out of scarce resources
o EQUITY how fair is the distribution of resources among members of society
EQUITY EFFICIENCY
• HORIZONTAL EQUITY • RESOURCE ALLOCATION
o identical treatment of identical people o complete description of who does
o most people agree about this what and who gets what
o depends on:
• VERTICAL EQUITY technology
o different treatment of different people resources
in order to reduce the differences consumer tastes
o people disagree about this
• PARETO OPTIMALITY
o allocation of resources is Pareto
efficient if any reallocation would
make at least 1 person worse off
o PARETO GAIN reallocation of
resources that makes at least 1 person
better off with no person worse off
The Pareto-efficient frontier
Pareto
Pareto gaingain
any point inside - Pareto-inefficient
A - Pareto-inefficient if we can move to B any point on the frontier - Pareto-efficient
(which society chooses depends on relative values of utility)
-1-
Los beneficios de comprar resúmenes en Stuvia estan en línea:
Garantiza la calidad de los comentarios
Compradores de Stuvia evaluaron más de 700.000 resúmenes. Así estas seguro que compras los mejores documentos!
Compra fácil y rápido
Puedes pagar rápidamente y en una vez con iDeal, tarjeta de crédito o con tu crédito de Stuvia. Sin tener que hacerte miembro.
Enfócate en lo más importante
Tus compañeros escriben los resúmenes. Por eso tienes la seguridad que tienes un resumen actual y confiable.
Así llegas a la conclusión rapidamente!
Preguntas frecuentes
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
100% de satisfacción garantizada: ¿Cómo funciona?
Nuestra garantía de satisfacción le asegura que siempre encontrará un documento de estudio a tu medida. Tu rellenas un formulario y nuestro equipo de atención al cliente se encarga del resto.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller mreducation. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for $3.44. You're not tied to anything after your purchase.
