CHAP09 Political Economy 公共金融与 及公共政策课件.pptVIP

Chapter 9 Political Economy ? 2007 Worth Publishers Public Finance and Public Policy, 2/e, Jonathan Gruber Prepared by:FERNANDO QUIJANO, YVONN QUIJANO,KYLE THIEL APARNA SUBRAMANIAN 9 Political Economy ? 2007 Worth Publishers Public Finance and Public Policy, 2/e, Jonathan Gruber Public Finance and Public Policy, 2/e Jonathan Gruber Political Economy 9.5 Conclusion 9.3 Representative Democracy 9.2 Mechanisms for Aggregating Individual Preferences 9.1 Unanimous Consent on Public Goods Levels In the case of direct democracy, voters directly cast ballots in favor of or in opposition to particular public projects. The second case is that of representative democracy, whereby voters elect representatives, who in turn make decisions on public projects. Government failure is the inability or unwillingness of governments to appropriately address market failures. Chapter 9 9.4 Public Choice Theory: The Foundations of Government Failure Unanimous Consent on Public Goods Levels 9 . 1 Lindahl pricing An approach to financing public goods in which individuals honestly reveal their willingness to pay and the government charges them that amount to finance the public good. Unanimous Consent on Public Goods Levels 9 . 1 marginal willingness to pay The amount that individuals are willing to pay for the next unit of a good. Lindahl Pricing Lindahl’s procedure operates as follows: 1. The government announces a set of tax prices for the public good. 2. Each individual announces how much of the public good he or she wants at those tax prices. 3. The government repeats these steps to construct a marginal willingness to pay schedule for each individual. 4. The government adds up individual willingnesses to pay at each quantity of public good provided. 5. The government relates this overall demand curve to the marginal cost curve. 6. The government then finances this public good by charging individuals their willingnesses to pay for that quantity. Unanimous Consent on Public Goo