综合econ3430公共主题3lecture slide 3.pdfVIP

Equityandefficiency

•Thesearethetwofunctionsofagovernmentthatcatch

muchmoreattentionsthanthefunctionswemention

earlier:

–Protectingpropertyrightsisaminimalfunctionofgov’t.Modern

gov’tcertainlydoesmorethingsthanthat.

–Paternalismisarelativelycontroversialfunctionofgov’t.Modern

gov’twon’tpursuetoodeeplyandbroadlyinthisaspect.

•Mostmoderngov’tconsiderequityandefficiencyare

importantandtheconcernofthemoccupiesmost

motivatesbehindpublicpolicies.

–Thetrade-offofthetwoobjectives(theyareofteninconflicts)are

alsoonemostconcernedaffairinmodernsocieties.

ECON3430,CUHK2

Ourgoalsinthislecture

•Equity

–basicconceptsanditsrelationshipwith

efficiency

•Efficiency

–basicconceptsanditsrelationshipwith

market

ECON3430,CUHK3

Equity

•Whateconomistsmeanbyequity?

•Whyeconomistsshouldbotherdiscussing

equityproblem?

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Whateconomistsmeanbyequity?

•Economistsmainlytalkabouttheconsequenceof

policies,nottheprocedureofthes.

•Whichoneistheequityissueconcerningeconomists

most(notethatbotharerelatedtoallocationof

resource)?

–Thericherwillbecomericherandthepoorerwillbecomepoorer

ifaisimplemented.

–Aprojectwillbegrantedtoasuccessfulapplicantthroughan

opencompetitionandapplicantswillbeassessedbya

committeewhosemembershavenoconflictsofinterestsinthe

issue.

ECON3430,CUHK5

Whatecono