Efficiency and Equity in Welfare Economics

  • PierCarlo¬†Nicola

Part of the Lecture Notes in Economics and Mathematical Systems book series (LNE, volume 661)

Table of contents

  1. Front Matter
    Pages i-xii
  2. Inequality, Poverty, and Welfare

    1. Front Matter
      Pages 7-7
    2. PierCarlo Nicola
      Pages 1-6
    3. PierCarlo Nicola
      Pages 17-28
  3. Welfare and Efficiency

    1. Front Matter
      Pages 29-29
    2. PierCarlo Nicola
      Pages 41-47
    3. PierCarlo Nicola
      Pages 49-51
  4. Summary Example and Numerical Simulations

    1. Front Matter
      Pages 53-53
    2. PierCarlo Nicola
      Pages 55-68
    3. PierCarlo Nicola
      Pages 69-100
    4. PierCarlo Nicola
      Pages 101-126
    5. PierCarlo Nicola
      Pages 127-131
  5. Back Matter
    Pages 133-156

About this book

Introduction

Increasing efficiency in generating national income and improving equity in its distribution among economic agents is at the forefront of priorities of most modern economies. This book presents a model which aims to maximize a symmetrical welfare function under certain constraints which consider both efficiency and equity, i.e. taxes and subsidies, implemented by a public authority. The model is numerically implemented and considers a set of economic agents with starting incomes that satisfy Pareto income law under various values of the alpha parameter. Also, the model implementations respect the social production function. Various experiments are presented which show how income inequality (measured by means of the Lorenz curve and, what I call, the Lorenz-Gini inequality index) and measures of poverty are sensibly reduced by redistributing national income without lowering efficiency in production. A case study, or application, of Italian personal income in 2008 is also presented.

Keywords

Efficiency Equity Inequality Poverty Welfare economics

Authors and affiliations

  • PierCarlo¬†Nicola
    • 1
  1. 1.Dipto. MatematicaUniversità di MilanoMilanoItaly

Bibliographic information

  • DOI https://doi.org/10.1007/978-3-642-30071-4
  • Copyright Information Springer-Verlag Berlin Heidelberg 2013
  • Publisher Name Springer, Berlin, Heidelberg
  • eBook Packages Business and Economics
  • Print ISBN 978-3-642-30070-7
  • Online ISBN 978-3-642-30071-4
  • Series Print ISSN 0075-8442
  • About this book