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Chap 5 - K59
Chap 5 - K59
Human Welfare
Development
There are a total of ten (10) citizens living in a certain country. Six
(6) are farmers, each of whom earns $200 per year in income.
Three (3) others are small businesswomen, each of whom earn
$500 per year. The final resident owns a factory, and makes $1,000
per year. This means that the total income in the country is $3,700.
•Fill in the
following table
based on the
information
given
•Graph this
country’s Lorenz
cure.
•Calculate the
Gini coefficient
Copyright © 2009 Pearson Addison-Wesley. All rights reserved. 4-11
5.2.2 Measuring Income
Inequality and Poverty
5.2.2.2 Measuring Absolute Poverty
– Headcount Index
– Total poverty gap
TPG = i =1 (Yp − Yi )
H
TPG
APG =
N
– Where N is number of persons
– TPG is total poverty gap
24
Change in Income Inequality in
Selected Countries, with or without
Growth
• Extreme Poverty
– $1-a-day headcount shows some progress
– Incidence of extreme poverty is uneven
– WB: $1.25-a-day headcount.
• Policy options
– Changing relative factor prices
– Progressive redistribution of asset ownership
– Progressive taxation
– Transfer payments and public provision of
goods and services
4-34
5.3 Gender inequality
Gender Inequality Index
4-37
5.3 Gender inequality
Gender Gap Index
4-47
Financial Trade-Offs in the
Decision to Continue in School
8-67
Sustainable Development and
Environmental Accounting
8-70
Economics and the Environment
Other Basic Issues
8-74
Privately Owned Resources
Optimal Resource Allocation over Time
8-75
Economic Models of Environment
Issues
Common Property
Resources
A resource that is
collectively or
publicly owned and
allocated under a
system of
unrestricted access,
or as self-regulated
by users
8-76
Economic Models of Environment
Issues
8-79
Policy Options in Developing
and Developed Countries
Developing countries
• Proper Resource Pricing
• Community Involvement
• Clearer Property Rights and Resource Ownership
• Programs to Improve economic alternatives of the Poor
• Raising the Economic Status of Women
• Industrial Emissions Abatement Policies
• Proactive Stance toward Climate Change and
Environmental Degradation