ofCompetitiveMarkets(微观经济学-华侨大学,Jeff

,Chapter9,TheAnalysisofCompetitiveMarkets,Chapter9,Slide2,TopicstobeDiscussed,EvaluatingtheGainsandLossesfromGovernmentPolicies-ConsumerandProducerSurplusTheEfficiencyofaCompetitiveMarketMinimumPrices,Chapter9,Slide3,TopicstobeDiscussed,PriceSupportsandProductionQuotasImportQuotasandTariffsTheImpactofaTaxorSubsidy,Chapter9,Slide4,EvaluatingtheGainsandLossesfromGovernmentPolicies-ConsumerandProducerSurplus,ReviewConsumersurplusisthetotalbenefitorvaluethatconsumersreceivebeyondwhattheypayforthegood.Producersurplusisthetotalbenefitorrevenuethatproducersreceivebeyondwhatitcosttoproduceagood.,ConsumerandProducerSurplus,Quantity,0,Price,Chapter9,Slide6,Todeterminethewelfareeffectofagovernmentalpolicywecanmeasurethegainorlossinconsumerandproducersurplus.WelfareEffectsGainsandlossescausedbygovernmentinterventioninthemarket.,EvaluatingtheGainsandLossesfromGovernmentPolicies-ConsumerandProducerSurplus,Chapter9,Slide7,ChangeinConsumerandProducerSurplusfromPriceControls,Quantity,Price,Chapter9,Slide8,Observations:ThetotallossisequaltoareaB+C.Thetotalchangeinsurplus=(A-B)+(-A-C)=-B-CThedeadweightlossistheinefficiencyofthepricecontrolsorthelossoftheproducersurplusexceedsthegainfromconsumersurplus.,ChangeinConsumerandProducerSurplusfromPriceControls,Chapter9,Slide9,ObservationConsumerscanexperienceanetlossinconsumersurpluswhenthedemandissufficientlyinelastic,ChangeinConsumerandProducerSurplusfromPriceControls,Chapter9,Slide10,EffectofPriceControlsWhenDemandIsInelastic,Quantity,Price,Chapter9,Slide11,PriceControlsandNaturalGasShortages,1975Pricecontrolscreatedashortageofnaturalgas.Whatwasthedeadweightloss?,Chapter9,Slide12,Supply:QS=14+2PG+0.25POQuantitysuppliedintrillioncubicfeet(Tcf)Demand:QD=-5PG+3.75POQuantitydemanded(Tcf)PG=priceofnaturalgasin$/mcfandPO=priceofoilin$/b.,PriceControlsandNaturalGasShortages,Datafor1975,Chapter9,Slide13,PO=$8/bEquilibriumPG=$2/mcfandQ=20TcfPriceceilingsetat$1Thisinformationcanbeseengraphically:,PriceControlsandNaturalGasShortages,Datafor1975,Chapter9,Slide14,Quantity(Tcf),0,Price($/mcf),5,10,15,20,25,30,PriceControlsandNaturalGasShortages,Chapter9,Slide15,MeasuringtheImpactofPriceControls1Tcf=1billionmcfIfQD=18,thenP=$2.4018=-5PG+3.75(8)A=(18billionmcf)x($1/mcf)=$18billionB=(1/2)x(2b.mcf)x($0.40/mcf)=$0.4billionC=(1/2)x(2b.mcf)x($1/mcf)=$1billion,PriceControlsandNaturalGasShortages,Chapter9,Slide16,MeasuringtheImpactofPriceControls1975Changeinconsumersurplus=A-B=18-0.04=$17.6billionChangeinproducersurplus=-A-C=-18-1=-$19.0billion,PriceControlsandNaturalGasShortages,Chapter9,Slide17,MeasuringtheImpactofPriceControls1975dollars,deadweightloss=-B-C=-0.4-1=-$1.4billionIn2000dollars,thedeadweightlossismorethan$4billionperyear.,PriceControlsandNaturalGasShortages,Chapter9,Slide18,TheEfficiencyofaCompetitiveMarket,Whendocompetitivemarketsgenerateaninefficientallocationofresourcesormarketfailure?1)ExternalitiesCostsorbenefitsthatdonotshowupaspartofthemarketprice(e.g.pollution),Chapter9,Slide19,TheEfficiencyofaCompetitiveMarket,Whendocompetitivemarketsgenerateaninefficientallocationofresourcesormarketfailure?2)LackofInformationImperfectinformationpreventsconsumersfrommakingutility-maximizingdecisions.,Chapter9,Slide20,Governmentinterventioninthesemarketscanincreaseefficiency.Governmentinterventionwithoutamarketfailurecreatesinefficiencyordeadweightloss.,TheEfficiencyofaCompetitiveMarket,Chapter9,Slide21,WelfareLossWhenPriceIsHeldBelowMarket-ClearingLevel,Quantity,Price,Chapter9,Slide22,WelfareLossWhenPriceIsHeldAboveMarket-ClearingLevel,Quantity,Price,Chapter9,Slide23,TheMarketforHumanKidneys,The1984NationalOrganTransplantationActprohibitsthesaleoforgansfortransplantation.AnalyzingtheImpactoftheActSupply:QS=8,000+0.2PIfP=$20,000,Q=12,000Demand:QD=16,000-0.2P,Chapter9,Slide24,TheMarketforKidneys,andEffectsofthe1984OrganTransplantationAct,Quantity,Price,8,000,4,000,0,$10,000,$30,000,$40,000,Chapter9,Slide25,Theactlimitsthequantitysupplied(donations)to8,000.Losstosuppliersurplus:A+C=(8,000)($20,000)+(1/2)(4,000)($20,000)=$200/m.,TheMarketforHumanKidneys,Chapter9,Slide26,Gaintorecipients:A-B=(8,000)($20,000)-(1/2)(4,000)($20,000)=$120/m.Deadweightloss:B+Cor$200million-$120million=$80million,TheMarketforHumanKidneys,Chapter9,Slide27,OtherInefficiencyCost1)Allocationisnotnecessarilytothosewhovaluethekidneysthemost.2)Pricemayincreaseto$40,000,theequilibriumprice,withhospitalsgettingtheprice.,TheMarketforHumanKidneys,Chapter9,Slide28,Argumentsinfavorofprohibitingthesaleoforgans:1)Imperfectinformationaboutdonorshealthandscreening,TheMarketforHumanKidneys,Chapter9,Slide29,Argumentsinfavorofprohibitingthesaleoforgans:2)UnfairtoallocateaccordingtotheabilitytopayHoldingpricebelowequilibriumwillcreateshortagesOrgansversusartificialsubstitutes,TheMarketforHumanKidneys,Chapter9,Slide30,MinimumPrices,Periodicallygovernmentpolicyseekstoraisepricesabovemarket-clearinglevels.Wewillinvestigatethisbylookingatapricefloorandtheminimumwage.,Chapter9,Slide31,PriceMinimum,Quantity,Price,Chapter9,Slide32,TheMinimumWage,L,w,Chapter9,Slide33,AirlineRegulation,During1976-1981theairlineindustryintheU.S.changeddramatically.Deregulationleadtomajorchangesintheindustry.Someairlinesmergedorwentoutofbusinessasnewairlinesenteredtheindustry.,Chapter9,Slide34,EffectofAirlineRegulationbytheCivilAeronauticsBoard,Quantity,Price,AirlineIndustryData,Numberofcarriers337286608696Passengerloadfactor(%)545961626769Passenger-milerate(constant1995dollars).50.129.126Realcostindex(1995=100)10112211110710099Realcostindexcorrectedforfuelcostincreases94989810010098,197519801985199019951996,Chapter9,Slide36,AirlineIndustryData,Airlineindustrydatashow:1)Long-runadjustmentasthenumberofcarriersincreasedandpricesdecreased2)Higherloadfactorsindicatingmoreefficiency,Chapter9,Slide37,AirlineIndustryData,Airlineindustrydatashow:3)Fallingrates4)Realcostincreasedslightly(adjustedfuelcost)5)Largewelfaregain,Chapter9,Slide38,PriceSupportsandProductionQuotas,Muchofagriculturalpolicyisbasedonasystemofpricesupports.Thisissupportpriceissetabovetheequilibriumpriceandthegovernmentbuysthesurplus.Thisisoftencombinedwithincentivestoreduceorrestrictproduction,Chapter9,Slide39,PriceSupports,Quantity,Price,Chapter9,Slide40,B,A,PriceSupports,Quantity,Price,S,D,P0,Q0,Ps,Q2,Q1,ThecosttothegovernmentisthespeckledrectanglePs(Q2-Q1),D,TotalWelfareLoss,TotalwelfarelossD-(Q2-Q1)ps,Chapter9,Slide41,PriceSupports,Question:IsthereamoreefficientwaytoincreasefarmersincomebyA+B+D?,Chapter9,Slide42,ProductionQuotasThegovernmentcanalsocausethepriceofagoodtorisebyreducingsupply.,PriceSupportsandProductionQuotas,Chapter9,Slide43,Whatistheimpactof:1)Controllingentryintothetaxicabmarket?2)Controllingthenumberofliquorlicenses?,PriceSupportsandProductionQuotas,Chapter9,Slide44,SupplyRestrictions,Quantity,Price,Chapter9,Slide45,B,A,C,D,SupplyRestrictions,Quantity,Price,Chapter9,Slide46,SupplyRestrictions,=A-C+B+C+D=A+B+D.Thechangeinconsumerandproducersurplusisthesameaswithpricesupports.=-A-B+A+B+D-B-C-D=-B-C.,Chapter9,Slide47,SupplyRestrictions,Questions:Howcouldthegovernmentreducethecostandstillsubsidizethefarmer?Whichismorecostly:supportsoracreagelimitations?,Chapter9,Slide48,SupportingthePriceofWheat,1981Supply:Qs=1,800+240PDemand:QD=3,550-266PEquilibriumpriceandquantitywas$3.46and2,630millionbushels,Chapter9,Slide49,SupportingthePriceofWheat,1981Pricesupportwassetat$3.70QD+QG=QDT=3,440-266P+QGQS=QD1,800+240P=3,550-266P+QGQG=506P-1,750QG=(506)(3.70)-175=122millionbushels,Chapter9,Slide50,TheWheatMarketin1981,Quantity,Price,Chapter9,Slide51,SupportingthePriceofWheat,1981Thechangeinconsumersurplus=(-A-B)A=(3.70-3.46)(2,566)=$616millionB=(1/2)(3.70-3.46)(2,630-2,566)=$8millionChangeinconsumersurplus:-$624million.,Chapter9,Slide52,SupportingthePriceofWheat,1981Costtothegovernment:$3.70 x122millionbushels=$452millionTotalcost=$624+452=$1,076millionTotalgain=A+B+C=$638millionGovernmentalsopaid30cents/bushel=$806million,Chapter9,Slide53,SupportingthePriceofWheat,In1985,exportdemandfellandthemarketclearingpriceofwheatfellto$1.80/bushel.,Chapter9,Slide54,SupportingthePriceofWheat,1985Supply:QS=1,800+240P1986Demand:QD=2580-194PQS=QDat$1.80and2,232millionbushelsPS=$3.20Tomaintain$3.20/bushelaproductionquotaof2,425bushelswasimposed,Chapter9,Slide55,SupportingthePriceofWheat,1985GovernmentPurchase:2,425=2,580-194P+QGQG=-155+194PP=$3.20-thesupportpriceQG=-155+194($3.20)=466millionbushels,Chapter9,Slide56,TheWheatMarketin1985,Quantity,Price,Chapter9,Slide57,SupportingthePriceofWheat,1985GovernmentPurchase:Governmentcost=$3.20 x466=$1,491million80centsubsidy=.80 x2,425=$1,940millionTotalcost=$3.5billion,Chapter9,Slide58,SupportingthePriceofWheat,Question:Whatisthechangeinconsumerandproducersurplus?,Chapter9,Slide59,SupportingthePriceofWheat,1996FreedomtoFarmReducespricesupportsandquotasuntil2003whentheygobackintoeffectunderthe1996law.,Chapter9,Slide60,SupportingthePriceofWheat,1998WheatMarketP=$2.65QD=3244-283PQS=1944+207PQ=2493Governmentsubsidyof.66/bushelor$1.6billion,Chapter9,Slide61,ImportQuotasandTariffs,Manycountriesuseimportquotasandtariffstokeepthedomesticpriceofaproductaboveworldlevels,Chapter9,Slide62,ImportTarifforQuotaThatEliminatesImports,Quantity,Price,Howhighwouldatariffhavetobetogetthesameresult?,Chapter9,Slide63,ImportTarifforQuota(generalcase),Quantity,Price,Theincreaseinpricecanbeachievedbyaquotaoratariff.AreaAisagainthegaintodomesticproducers.ThelosstoconsumersisA+B+C+D.,Chapter9,Slide64,ImportTarifforQuota(generalcase),IfatariffisusedthegovernmentgainsD,sothenetdomesticproductlossisB+C.Ifaquotaisusedinstead,rectangleDbecomespartoftheprofitsofforeignproducers,andthenetdomesticlossisB+C+D.,Price,Chapter9,Slide65,Question:WouldtheU.S.bebetterofforworseoffwithaquotainsteadofatariff?(e.g.Japaneseimportrestrictionsinthe1980s),ImportTarifforQuota(generalcase),Quantity,Price,Chapter9,Slide66,TheSugarQuota,Theworldpriceofsugarhasbeenaslowas4centsperpound,whileintheU.S.thepricehasbeen20-25centsperpound.,Chapter9,Slide67,TheSugarQuota,TheImpactofaRestrictedMarket(1997)U.S.production=15.6billionpoundsU.S.consumption=21.1billionpoundsU.S.price=22cents/poundWorldprice=11cents/pound,Chapter9,Slide68,TheSugarQuota,TheImpactofaRestrictedMarketU.S.ES=1.54U.S.ED=-0.3U.S.supply:QS=-7.83+1.07PU.S.demand:QD=27.45-0.29PP=.23andQ=13.7billionpounds,SugarQuotain1997,Quantity(billionsofpounds),Price(cents/lb.),5,10,15,20,25,0,4,8,11,16,20,30,C,D,B,QS=4.0,QS=15.6,Qd=21.1,Qd=24.2,A,SugarQuotain1997,Quantity(billionsofpounds),Price(cents/lb.),5,10,15,20,25,0,4,8,11,16,20,30,RectangleDwasthegaintoforeignproducerswhoobtainedquotaallotments,or$600million.TrianglesBandCrepresentthedeadweightlossof$800million.,Chapter9,Slide71,TheImpactofaTaxorSubsidy,Theburdenofatax(orthebenefitofasubsidy)fallspartlyontheconsumerandpartlyontheproducer.Wewillconsideraspecifictaxwhichisataxofacertainamountofmoneyperunitsold.,Chapter9,Slide72,IncidenceofaSpecificTax,Quantity,Price,Chapter9,Slide73,IncidenceofaSpecificTax,Fourconditionsthatmustbesatisfiedafterthetaxisinplace:1)QuantitysoldandPbmustbeonthedemandline:QD=QD(Pb)2)QuantitysoldandPSmustbeonthesupplyline:QS=QS(PS),Chapter9,Slide74,IncidenceofaSpecificTax,Fourconditionsthatmustbesatisfiedafterthetaxisinplace:3)QD=QS4)Pb-PS=tax,ImpactofaTaxDependsonElasticitiesofSupplyandDemand,Quantity,Quantity,Price,Price,BurdenonBuyer,BurdenonSeller,Chapter9,Slide76,Pass-throughfractionES/(ES-Ed)Forexample,whendemandisperfectlyinelastic(Ed=0),thepass-throughfractionis1,andallthetaxisbornebytheconsumer.,TheImpactofaTaxorSubsidy,Chapter9,Slide77,TheEffectsofaTaxorSubsidy,Asubsidycanbeanalyzedinmuchthesamewayasatax.Itcanbetreatedasanegativetax.Thesellerspriceexceedsthebuyersprice.,Chapter9,Slide78,Subsidy,Quantity,Price,Chapter9,Slide79,Subsidy,Withasubsidy(s),thesellingpricePbisbelowthesubsidizedpricePSsothat:s=PS-Pb,Chapter9,Slide80,Subsidy,ThebenefitofthesubsidydependsuponEd/ES.Iftheratioissmall,mostoftheb