chapter 6 economic inequality (2)

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1、Chapter6EconomicinequalityWhatiseconomicinequality？MeasuringeconomicinequalityInequalityandDevelopment:Interconnections:Theinverted-Uhypothesis6.1Whatiseconomicinequality？一．Thereasonstobeinterestedininequalityofincomeandwealthdistribution.First,theintrinsic,inwhichwevalueequalityforitsownsake

2、andthereforeregardinequalityreductionasanobjectiveinitself;Second,thefunctional,inwhichwestudyinequalitytounderstanditsimpactonotherfeaturesofthedevelopmentprocess.二．ThenotionofeconomicinequalityEconomicinequalityisaslipperyconceptandisintimatelylinkedtoconceptssuchaslifetimes,personalcapabil

3、itiesandpoliticalfreedoms.Disparitiesinwealthorincome.三．FunctionalandpersonalincomedistributionFunctionalincomedistribution:thereturnstodifferentfactorsofproduction.--------labor;capitalequipmentofvariouskinds;land.Personalincomedistribution:(Bycombiningthefunctionaldistributionofincomewithth

4、edistributionoffactorownership,wearriveatthepersonaldistributionofincome:)Adescriptionofincomeflowstoindividualsorhouseholdsnotfactorsofproduction.Figure6.1functionalandpersonaldistributionofincomeThefirstsetofarrowsdescribeshowincomeisgeneratedfromtheproductionprocess-------wages;rents;profi

5、ts.-----Thedistributionofincomeunderthesevariouscategoriesisthefunctionaldistributionofincome.Thesecondsetofarrowstellsushowdifferentcategoriesofincomearefunneledtohouseholds.Thedirectionandmagnitudeoftheseflowsdependonwhoownswhichfactorsofproductionandhowmuchofthesefactors.四．Whyshouldwecarea

6、boutthistwo-stepprocess?First,theunderstandingofincomesourcesmaywellinfluencehowwejudgetheoutcome.Second,functionaldistributiontellsusmuchabouttherelationshipbetweeninequalityandotherfeaturesofdevelopment,suchasgrowth.6.2MeasuringeconomicinequalityShareacake.一．Fourcriteriaforinequalitymeasure

7、ment1.anonymityprinciple------Fromanethicalpointofview,itdoesnotmatterwhoisearningtheincome.-------thuspermutationsofincomesamongpeopleshouldnotmatterforinequalityjudgments.Suchas：Shouldbeviewedasidentical(fromthepointofviewofinequality).Bear