The document discusses efficiency and equity issues related to distributive justice in government policy. It covers topics like Pareto efficiency, market failures, positive and normative economics, welfare economics, the Pareto criterion, and approaches to distributive justice based on markets, egalitarianism, utilitarianism, natural rights, and maximizing the well-being of the least well-off.
Black magic specialist in Canada (Kala ilam specialist in UK) Bangali Amil ba...
Welfareeconomics Efficiencyequity
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8. Figure 10.4 Contract Curve a g Both a and g are on the contract curve -- we cannot rank these allocations using the Pareto rule!
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19. Figure 10.9a Welfare Maximization UPF c a b (a) Jane ’ s utility W 1 W 2 W 3 Denise’s utility Isowelfare curves: (similar to individual indifference curves) summarise all the allocations with identical levels of welfare. Their shape reflect different views of society about distribution UPF: derived by moving along the contract curve. Ordinal utility, so we cannot say how much the curve slopes downwards but not at a definite rate
20. Figure 10.9a Welfare maximization UPF c a (a) Jane ’ s utility W 1 W 2 Denise’s utility Y Assuming it is possible to construct this type of functions, this representation nicely illustrates the conflict between efficiency and equity X
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