财政学英文版课件：Chap012 INCOME REDISTRIBUTION CONCEPTUAL ISSUES

1、INCOME REDISTRIBUTION: CONCEPTUAL ISSUES Chapter 12The Distribution of Money Income Among HouseholdsSource: US Bureau of the Census 2011aNote: These figures do not include the value of in-kind transfers.12-2Who is Poor?Source: US Bureau of the Census, 2012a 12-3U.S. Poverty RateSource: US Bureau of

2、the Census 2012a12-4Interpreting the Distributional DataIssues Poverty Line: fixed level of real income considered enough to provide a minimally adequate well-being Census income on which poverty level is based consists only of familys cash receipts In-kind transfers Official figures ignore taxes In

3、come measured annually Consumption data may provide better assessment of well-being Problems defining unit of observation12-5Rationale for Income DistributionSimple Utilitarianism Utilitarian Social Welfare Function:W = F(U1, U2, , Un) “Promote Greatest Good for Greatest Number” Additive Social Welf

4、are FunctionW = U1 + U2 + + Un Assumptions1. Individuals have identical utility functions that depend only on their incomes2. Utility functions exhibit diminishing marginal utility of income3. Total amount of income is fixed 12-6Implications for Income InequalityEqualizing income will increase WPaul

5、s marginal utilityPeters marginal utilityPauls income Peters income 00MUPaulMUPeteraecdfI*bTake ab from Peter and give to PaulPaul gains this much utilityPeter loses this much utilityThis is the net gain to societySocial welfare maximized12-7The Maximin Criterion Social Welfare FunctionW = Minimum(U

6、1, U2, , Un) Maximin criterion - No inequality acceptable unless it works to the advantage of the least well off Original position “behind the veil of ignorance” Critique of Rawls12-8Pareto Efficient Income Redistribution Will redistribution always make someone worse off? Redistribution if gain in u

7、tility from charity exceeds loss from reduced consumption Government reduces cost of redistribution Income distribution as a Public Good Social safety net Social stability12-9Non-individualistic Views Fundamental principles specifying income distribution derived independent of tastes Incomes distrib

8、uted equally as matter of principle Platos 4:1 ratio of highest to lowest income Commodity Egalitarianism: only special commodities need be distributed equally such as right to vote or food during war Education? Healthcare?12-10Other Considerations Processes versus Outcomes Fairness of distribution

9、of income judged by fairness of process that generated it Robert Nozick Society cannot redistribute income because society has no income to redistribute With sufficient social mobility, distribution of income is of no particular ethical interest Corruption stemming from extreme inequality is an argu

10、ment for income redistribution12-11Expenditure Incidence Expenditure incidence: impact of expenditure policy on distribution of real income Difficult to determine Relative price effects Public goods Valuing in-kind transfers12-12In-Kind Transfers12-13In-Kind Transfers12-14Reasons for In-Kind Transfe

11、rs Paternalism Commodity egalitarianism Reduce welfare fraud Political factors12-15Chapter 12 Summary Poverty rates in the U.S. vary greatly by age, race, ethnicity, and gender Measuring the extent of poverty is difficult for various reasons The rationale for redistributing income stems from attempts to maximize a social we