《princchpresentationemankiw微观经济学部分章完整-课件.ppt》由会员分享，可在线阅读，更多相关《princchpresentationemankiw微观经济学部分章完整-课件.ppt（25页珍藏版）》请在三一办公上搜索。
1、,N. Gregory Mankiw,20,N. Gregory MankiwEconomicsPrin,In this chapter, look for the answers to these questions:,How much inequality and poverty exist in our society? What are the problems measuring inequality? What are some of the leading philosophies on the proper role of government in altering the
2、distribution of income? What policies are used to fight poverty? What are the problems with these policies?,In this chapter, look for the,Introduction,From the previous two chapters:Equilibrium wages equal the value of workers marginal products.Differences in equilibrium wages result from difference
3、s in worker characteristics: education, experience, talent, effortjob characteristics: extent to which a job is pleasant and safeSome earnings differences due to discrimination.,0,IntroductionFrom the previous,Introduction,Even in the absence of discrimination, the income distribution in a market ec
4、onomymay not be equitable or otherwise desirable. In this chapter, we examineindicators of inequality and povertyphilosophies about income redistributionpolicies designed to help the poor,0,IntroductionEven in the absenc,The U.S. Income Distribution: 2009,0,The U.S. Income Distribution:,U.S. Inequal
5、ity, 19502009,0,Income share of the top 20% divided by income share of the bottom 20%,U.S. Inequality, 195020090Inc,Inequality Around the World,0,Income share of the top 10% divided by income share of the bottom 10%,Inequality Around the World0In,Poverty,Poverty line: an absolute level of income set
6、 by the govt for each family size below which a family is deemed to be in povertyPoverty rate: the percentage of the population whose family income falls below the poverty lineIn 2009 in the U.S.,median family income = $61,082poverty line for family of four = $21,954poverty rate = 14.3%,0,PovertyPov
7、erty line: an absol,U.S. Poverty Over Time,Percent of the population below poverty line,0,U.S. Poverty Over TimePercent,U.S. Poverty Rate by Group, 2009,0,U.S. Poverty Rate by Group, 20,Problems Measuring Inequality,1.In-kind transfers: assistance that takes the form of g&s rather than cashOmitted f
8、rom measures of inequality and poverty, biasing them upward2.The Life Cycle: the regular pattern of income variation over a persons lifePeople can borrow and save to offset life-cycle changes in income (e.g., saving for retirement).Life-cycle income variation causes inequality in income but not ineq
9、uality in living standards.,0,Problems Measuring Inequality1,Problems Measuring Inequality,3.Transitory vs. Permanent Income:People can borrow and save to smooth out transitory income fluctuations.A better measure of inequality in living standards would be based not on current income, but on permane
10、nt income, a persons normal income.4.Economic mobility:Many people move among income classes.The poverty and inequality measures discussed above do not distinguish between the temporarily poor and the persistently poor.,0,Problems Measuring Inequality3,The Political Philosophy of Redistributing Inco
11、me,We consider three philosophies:UtilitarianismLiberalismLibertarianism,0,The Political Philosophy of R,Utilitarianism,Utility: a measure of happiness or satisfactionUtilitarianism: argues that govt should choose policies to maximize societys total utilityFounders: Jeremy Bentham, John Stuart MillB
12、ecause of diminishing marginal utility, redistributing income from rich to poor increases utility of the poor more than it reduces utility of the rich. Yet, utilitarians do not advocate equalizing incomes would reduce total income of everyone due to incentive effects and efficiency losses.,0,Utilita
13、rianismUtility: a meas,Liberalism,Liberalism: argues that govt should choose policies deemed to be just by an impartial observer behind a “veil of ignorance”Founder: John RawlsMaximin criterion: govt should aim to maximize the well-being of societys worst-off personCalls for more redistribution than
14、 utilitarianism (though still not complete equalization of incomes).Income redistribution is a form of social insurance, a govt policy aimed at protecting people against the risk of adverse events.,0,LiberalismLiberalism: argues,Libertarianism,Libertarianism: argues that govt should punish crimes an
15、d enforce voluntary agreements but not redistribute incomeAdvocate: Robert NozickInstead of focusing on outcomes, libertarians focus on the process.Govt should enforce individual rights, should try to equalize opportunities.If the income distribution is achieved fairly, govt should not interfere, ev
16、en if unequal.,0,LibertarianismLibertarianism:,Policies to Reduce Poverty,Poor families more likely to experience homelessnessdrug dependencehealth problemsteen pregnancyilliteracyunemploymentMost people believe govt should provide a “safety net.”We now consider a few such policies,0,Policies to Red
17、uce PovertyPoor,1. Minimum-Wage Laws,Arguments for:Helps the poor without any cost to the govt.Little impact on employment if demand for unskilled labor is relatively inelastic.Arguments against:In the long run, demand for unskilled labor is likely elastic, so minimum wage causes substantial unemplo
18、yment among the unskilled.Those helped by minimum wage are more likely to be teens from middle-income families than low-income adult workers.,0,1. Minimum-Wage LawsArguments,2. Welfare,Welfare: govt programs that supplement the incomes of the needyTemporary Assistance for Needy Families (TANF)Supple
19、mental Security Income (SSI)Critics argue that such programs create incentives to become or remain needy, argue that welfare contributed to the rise of the single-parent family.However, the severity of such incentive problems is unknown.Proponents note that inflation-adjusted welfare benefits fell a
20、s single-parent families increased.,0,2. WelfareWelfare: govt prog,3. Negative Income Tax,Negative income tax: a tax system that collects revenue from high-income households and gives transfers to low-income householdsExample: Taxes owed = (1/3 of income) $10,000If earnings = $90,000, taxes owed = $
21、20,000If earnings = $60,000, taxes owed = $10,000If earnings = $30,000, taxes owed = $0If earnings = $15,000, taxes “owed” = $5,000i.e., would receive $5,000 payment from govtThe Earned Income Tax Credit (EITC) is similar to a negative income tax.,0,3. Negative Income TaxNegativ,4. In-Kind Transfers
22、,In-kind transfers are goods or services provided to the needy. Examples:homeless shelterssoup kitchensfood stamps, govt vouchers redeemable for food at grocery storesMedicaid, govt-provided healthcare for the poorAn alternative: cash paymentswould allow people to buy what they most needbut critics
23、argue could be used for drugs, alcohol,0,4. In-Kind TransfersIn-kind t,Anti-Poverty Programs and Work Incentives,Assistance from anti-poverty programs declines as income rises. The result: Poor families face high effective marginal tax rates (exceeding 100% in some cases!). Such policies therefore d
24、iscourage the poor from escaping poverty on their own. One possible solution: “Workfare,” a system requiring people to accept government jobs while collecting benefits.,0,Anti-Poverty Programs and Work,CONCLUSION,Poverty is one of societys most serious problems.One of the Ten Principles from Chapter
25、 1: Governments can sometimes improve market outcomes. Public policy can help reduce poverty and inequality. Another principle: People face trade-offs.Policies designed to improve equity often sacrifice efficiency, so the proper scope of policy is the subject of ongoing controversy.,0,CONCLUSIONPove
26、rty is one of so,SUMMARY,Data on income distribution show a wide disparity in our society. The richest 20% of families earn about ten times as much as the poorest 20%. Problems in measuring inequality arise from in-kind transfers, the economic life cycle, transitory income, and economic mobility. Wh
27、en these factors are taken into account, the distribution of well-being is probably less unequal than the distribution of annual income., 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed w
28、ith a certain product or service or otherwise on a password-protected website for classroom use.,SUMMARYData on income distribu,SUMMARY,Political philosophers differ in their views of the proper role of government in altering the income distribution. Utilitarians believe that income distribution sho
29、uld maximize the sum of everyones utility. Liberals believe the government should aim to maximize the well-being of the worst-off person in society. Libertarians believe the government should aim for equality of opportunity, not equality of income., 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.,SUMMARYPolitical philosophers,
