Tham khảo tài liệu 'chương 16 giới thiệu về kinh tế phúc lợi', kinh doanh - tiếp thị, quản trị kinh doanh phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | Chapter 16 Introduction to welfare economics David Begg, Stanley Fischer and Rudiger Dornbusch, Economics, 6th Edition, McGraw-Hill, 2000 Power Point presentation by Peter Smith Welfare economics The branch of economics dealing with normative issues. Its purpose is not to describe how the economy works but to assess how well it works. 16. See the introduction to chapter 16 in the main text. Equity and efficiency Horizontal equity the identical treatment of identical people Vertical equity the different treatment of different people in order to reduce the consequences of their innate differences 16. See Section 16-1 in the main text. Pareto efficiency An allocation is Pareto-efficient for a given set of consumer tastes, resources and technology, if it is impossible to move to another allocation which would make some people better off and nobody worse off. 16. See Section 16-1 in the main text. Perfect competition and Pareto efficiency If every market in the economy is a . | Chapter 16 Introduction to welfare economics David Begg, Stanley Fischer and Rudiger Dornbusch, Economics, 6th Edition, McGraw-Hill, 2000 Power Point presentation by Peter Smith Welfare economics The branch of economics dealing with normative issues. Its purpose is not to describe how the economy works but to assess how well it works. 16. See the introduction to chapter 16 in the main text. Equity and efficiency Horizontal equity the identical treatment of identical people Vertical equity the different treatment of different people in order to reduce the consequences of their innate differences 16. See Section 16-1 in the main text. Pareto efficiency An allocation is Pareto-efficient for a given set of consumer tastes, resources and technology, if it is impossible to move to another allocation which would make some people better off and nobody worse off. 16. See Section 16-1 in the main text. Perfect competition and Pareto efficiency If every market in the economy is a perfectly competitive free market, the resulting equilibrium throughout the economy will be Pareto-efficient. As expressed in Adam Smith’s notion of the Invisible Hand. 16. See Section 16-2 in the main text. Competitive equilibrium and Pareto-efficiency At any output such as Q1*, the last film must yield consumers P1* extra utility. The supply curve for the competitive film industry (SS) is the marginal cost of films. Away from P1*, Q1*, there is a divergence between the marginal cost and the marginal benefit derived by consumers so a move to that position makes society better off. D SS D Q1* P1* Quantity of films Price of films 16. See Section 16-2 in the main text, and Figure 16-3. Distortions A distortion exists whenever society’s marginal cost of producing a good does not equal society’s marginal benefit from consuming that good. Some such distortions may be inevitable and it may be more efficient to spread such distortion over a wide range of markets, rather than .
