{"id":713,"date":"2019-10-21T19:27:37","date_gmt":"2019-10-21T23:27:37","guid":{"rendered":"http:\/\/sites.williams.edu\/cdealumniresources\/?p=713"},"modified":"2020-03-04T15:14:46","modified_gmt":"2020-03-04T20:14:46","slug":"article-social-welfare-and-the-tradeoff-between-efficiency-and-equity-part-ii","status":"publish","type":"post","link":"https:\/\/sites.williams.edu\/cdealumniresources\/content-type\/article-social-welfare-and-the-tradeoff-between-efficiency-and-equity-part-ii\/","title":{"rendered":"Required Reading: “Social Welfare and the Tradeoff Between Efficiency and Equity”"},"content":{"rendered":"\r\n

“Social Welfare, the Tradeoff between Equity and Efficiency, and the Marginal Efficiency Cost of Funds” <\/a><\/h1>\r\n

written by Prof. Jon Bakija<\/h4>\r\n

This article has been assigned as required reading for “Public Economics,” one of the core courses taught in the fall.<\/p>\r\n

Abstract:<\/strong><\/p>\r\n

\r\n

The economic literature on \u201coptimal income taxation\u201d addresses the question of how to design tax and transfer policy so as to maximize \u201csocial welfare,\u201d which is some function of the wellbeing of all members of society. It clarifies how the social-welfare-maximizing policy depends on one\u2019s philosophy of distributive justice, and on empirical evidence about the behavioral response to incentives, and thus provides a systematic way of evaluating the tradeoff between equity and efficiency. Here, I explain the key insights of the optimal income taxation literature in a way that should be accessible to those with a familiarity with introductory economics, and then provide a brief introduction to some interesting pieces of evidence from around the world that are relevant to this question.<\/p>\r\n<\/blockquote>\r\n

Citation:<\/strong><\/p>\r\n

Bakija, J. (2016). “Social Welfare, the Tradeoff between Equity and Efficiency, and the Marginal Efficiency Cost of Funds.” Prepared for Williams College.<\/p>\r\n

Download the article <\/a> Go to Research by Topic <\/a> Go to the Public Economics course page <\/a> View other CDE courses <\/a> View Research by Region <\/a> View the latest research articles <\/a><\/p>\r\n","protected":false},"excerpt":{"rendered":"

In the second of a two-part series, this article on social welfare considers cross-country differences in the effect of taxation on labor supply. It has been assigned as reading for “Public Economics,” a core course taught in the fall.<\/p>\n","protected":false},"author":2197,"featured_media":4069,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"tpl-full-width.php","format":"standard","meta":{"_acf_changed":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[60,310,101,655,89,648],"tags":[207,205,197,206,174],"class_list":["post-713","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-content-type","category-foundational-articles","category-public-economics-and-taxation-browse-by-research-topic","category-public-economics-articles-bakija","category-browse-by-research-topic","category-syllabi","tag-cross-country-comparison","tag-labor-supply","tag-leaky-bucket","tag-optimal-taxation","tag-public-economics"],"acf":[],"_links":{"self":[{"href":"https:\/\/sites.williams.edu\/cdealumniresources\/wp-json\/wp\/v2\/posts\/713","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sites.williams.edu\/cdealumniresources\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sites.williams.edu\/cdealumniresources\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sites.williams.edu\/cdealumniresources\/wp-json\/wp\/v2\/users\/2197"}],"replies":[{"embeddable":true,"href":"https:\/\/sites.williams.edu\/cdealumniresources\/wp-json\/wp\/v2\/comments?post=713"}],"version-history":[{"count":12,"href":"https:\/\/sites.williams.edu\/cdealumniresources\/wp-json\/wp\/v2\/posts\/713\/revisions"}],"predecessor-version":[{"id":5664,"href":"https:\/\/sites.williams.edu\/cdealumniresources\/wp-json\/wp\/v2\/posts\/713\/revisions\/5664"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sites.williams.edu\/cdealumniresources\/wp-json\/wp\/v2\/media\/4069"}],"wp:attachment":[{"href":"https:\/\/sites.williams.edu\/cdealumniresources\/wp-json\/wp\/v2\/media?parent=713"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sites.williams.edu\/cdealumniresources\/wp-json\/wp\/v2\/categories?post=713"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sites.williams.edu\/cdealumniresources\/wp-json\/wp\/v2\/tags?post=713"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}