(财政学罗森第九版英文课件)Chap003Tools of Normative Analysis
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3-20
• Individualistic outlook
– Merit goods
• Results orientation • Coherent framework for analyzing policy
– Will it have desirable distributional consequences? – Will it enhance efficiency? – Can it be done at a reasonable cost?
3-2
Edgeworth Box
y
Eve
r
0’
u
v
w
Fig leaves per year
0 Adam
x Apples per year
s
3-3
3-4
3-5
Making Eve better off without Adam becoming worse off
Eve
r
0’
Eg
g
Fig leaves per year
p Ep1
p1
A Pareto
Efficient
Allocation
Ag
0
Adam
Apples per year
s
3-6
Making both Adam and Eve better off
Fig leaves per year
r
0 Adam
g Eg Ep2
p p2
p1
Apples per year
• MRTaf = Pa/Pf
• Pa/Pf = MCa/MCf
3-14
Efficiency versus Equity
Eve
r
0’
p3
Fig leaves per year
p5
0 Adam
q Apples per year
s
3-15
Utility Possibilities Curve
Adam’s utility
CHAPTER 3
Tools of Normative Analysis
McGraw-Hill/Irwin
Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.
Welfare Economics
• Welfare Economics – branch of economic theory concerned with the social desirability of alternative economic states
p4 p3
Ap2 Ag
Eve 0’
s
3-8
Fig leaves per year
r
0 Adam
The Contract Curve
g Eg Ep2
p p2 p1
Apples per year
p4 p3
Eve 0’
The contract curve
Ap2 Ag
s
3-9
Pareto Efficiency in Consumption
• MRTaf = Marginal rate of transformation of apples for fig leaves
• MRTaf = MCa/MCf
3-12
Efficiency Conditions with Variable
Production
Adam
Eve
• MRTaf = MRSaf = MRSaf
U p3
q
p5
U Eve’s utility
3-16
Adam’s utility
Social Indifference Curve
W = F(UAdam, UEve)
Increasing social welfare
Eve’s utility
3-17
Adam’s utility
Maximizing Social Welfare
Adam
Eve
MRSaf = MRSaf
3-10
Production Possibilities Curve
Fig leaves per year
C w y
│Slope│ = marginal rate of transformation
C
0
xz
Apples per year
3-11
Marginal Rate of Transformation
i iii
ii
Eve’s utility
3-18
Market Failure
• Market Power
– Monopoly
• Nonexistence of Markets
– Asymmetric information – Externality – Public good
3-19
Buying into Welfare Economics
Adam
wenku.baidu.com
Eve
• MCa/MCf = MRSaf = MRSaf
3-13
The First Fundamental Theorem of Welfare Economics
Adam
• MRSaf = Pa/Pf
Eve
• MRSaf = Pa/Pf
Adam
Eve
• MRSaf = MRSaf
• MCa/MCf = Pa/Pf
Eve 0’
• Pareto efficient • Pareto improvement
Ap2
Ag
s
3-7
Starting from a different initial point
Fig leaves per year
r
0 Adam
g Eg Ep2
k p p2 p1
Apples per year
• Individualistic outlook
– Merit goods
• Results orientation • Coherent framework for analyzing policy
– Will it have desirable distributional consequences? – Will it enhance efficiency? – Can it be done at a reasonable cost?
3-2
Edgeworth Box
y
Eve
r
0’
u
v
w
Fig leaves per year
0 Adam
x Apples per year
s
3-3
3-4
3-5
Making Eve better off without Adam becoming worse off
Eve
r
0’
Eg
g
Fig leaves per year
p Ep1
p1
A Pareto
Efficient
Allocation
Ag
0
Adam
Apples per year
s
3-6
Making both Adam and Eve better off
Fig leaves per year
r
0 Adam
g Eg Ep2
p p2
p1
Apples per year
• MRTaf = Pa/Pf
• Pa/Pf = MCa/MCf
3-14
Efficiency versus Equity
Eve
r
0’
p3
Fig leaves per year
p5
0 Adam
q Apples per year
s
3-15
Utility Possibilities Curve
Adam’s utility
CHAPTER 3
Tools of Normative Analysis
McGraw-Hill/Irwin
Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.
Welfare Economics
• Welfare Economics – branch of economic theory concerned with the social desirability of alternative economic states
p4 p3
Ap2 Ag
Eve 0’
s
3-8
Fig leaves per year
r
0 Adam
The Contract Curve
g Eg Ep2
p p2 p1
Apples per year
p4 p3
Eve 0’
The contract curve
Ap2 Ag
s
3-9
Pareto Efficiency in Consumption
• MRTaf = Marginal rate of transformation of apples for fig leaves
• MRTaf = MCa/MCf
3-12
Efficiency Conditions with Variable
Production
Adam
Eve
• MRTaf = MRSaf = MRSaf
U p3
q
p5
U Eve’s utility
3-16
Adam’s utility
Social Indifference Curve
W = F(UAdam, UEve)
Increasing social welfare
Eve’s utility
3-17
Adam’s utility
Maximizing Social Welfare
Adam
Eve
MRSaf = MRSaf
3-10
Production Possibilities Curve
Fig leaves per year
C w y
│Slope│ = marginal rate of transformation
C
0
xz
Apples per year
3-11
Marginal Rate of Transformation
i iii
ii
Eve’s utility
3-18
Market Failure
• Market Power
– Monopoly
• Nonexistence of Markets
– Asymmetric information – Externality – Public good
3-19
Buying into Welfare Economics
Adam
wenku.baidu.com
Eve
• MCa/MCf = MRSaf = MRSaf
3-13
The First Fundamental Theorem of Welfare Economics
Adam
• MRSaf = Pa/Pf
Eve
• MRSaf = Pa/Pf
Adam
Eve
• MRSaf = MRSaf
• MCa/MCf = Pa/Pf
Eve 0’
• Pareto efficient • Pareto improvement
Ap2
Ag
s
3-7
Starting from a different initial point
Fig leaves per year
r
0 Adam
g Eg Ep2
k p p2 p1
Apples per year