微观经济管理学与财务知识分析规范.pptx

Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/IrwinCopyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 2Q. How many economists does it take to screw in a light bulb?A. Eight. One to screw it in and seven to hold everything else constant.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 3uShould the government intervene in the market?lThe framework presented might be called the invisible hand framework.lInvisible hand framework perfectly competitive lead individuals to make voluntary choices that are in societys interest.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 4uA market failure occurs when the invisible hand pushes in such a way that individual decisions do not lead to socially desirable outcomes.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 5uAny time a market failure exists, there is a reason for possible government intervention into markets to improve the outcome.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 6uBecause the politics of implementing the solution often leads to further problems, government intervention may not necessarily improve the situation.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 7uExternalities are the effect of a decision on a third party that is not taken into account by the decision-maker.uExternalities can be both positive and negative.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 8uNegative externalities occur when the effect of a decision on others that is not taken into account by the decision-maker is detrimental to the third party.uExamples include second-hand smoke, water pollution, and congestion.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 9uPositive externalities occur when the effect of a decision on others that is not taken into account by the decision-maker is beneficial to others.uExamples include innovation, education, and new business formation.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 10uWhen negative externalities ensue third parties are hurt.uMarginal social cost is greater than marginal private cost.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 11uMarginal social cost includes all the marginal costs borne by society.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 12uMarginal social cost is calculated by adding the negative externalities associated with production to the marginal private costs of that production.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 13Marginal social benefit Marginal private cost Marginal social costCostQuantity0Q0P0Q1P1Marginal cost from externalityCopyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 14uPrivate trades can benefit third parties not involved in the trade.uMarginal social benefit equals the marginal private benefit of consuming a good or service plus the positive externalities resulting from consuming that good or service.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 15CostQuantity0Marginal benefit of an externalityD0 = Marginal private benefitD1 = Marginal social benefitQ0P0Q1P1S = Marginal private and social costCopyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 16uExternalities can be dealt with via direct regulation, incentive policies, and voluntary solutions.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 17uA program of direct regulation is where the amount of a good people are allowed to use is directly limited by the government.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 18uEconomists do not like this solution since it does not achieve the desired end as efficiently (at the lowest cost possible in total resources without consideration as to who pays those costs) and fairly as possible.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 19uDirect regulation is inefficient because it achieves a goal in a more costly manner than necessary.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 20uIncentive programs are more efficient than direct regulatory policies.uThe two types of incentive policies are either taxes or market incentives.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 21uA tax incentive program uses a tax to create incentives for individuals to structure their activities in a way that is consistent with the desired ends.uOften the tax yields the desired end more efficiently than straight regulation.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 22uThis solution embodies a measure of fairness about it the person who conserves the most pays the least tax.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 23uAnother way to handle a negative externality is through a pollution tax or effluent fees.uEffluent fees charges imposed by government on the level of pollution created.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 24Marginal social benefit Marginal private cost Marginal social costCostQuantity0Q0P0Q1P1Efficient taxCopyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 25uAn alternative to direct regulation is some type of market incentive program.uMarket incentive program a plan requiring market participants to certify total consumption their own or others has been reduced by a specified amount. Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 26uA market incentive program is similar to the regulatory solution in that the amount of the good used is reduced.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 27uA market incentive program differs from a regulatory solution in that individuals who reduce consumption by more than the required amount are given a marketable certificate that can be sold to someone else.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 28uVoluntary reductions leave individuals free to choose whether to follow what is socially optimal or what is privately optimal.uEconomists are dubious of voluntary solutions.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 29uA persons social conscience and willingness to do things for the good of society generally depend on his or her belief that others will also be helping.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 30uIf a socially conscious person comes to believe a large number of other people will not contribute, he or she will often lose their social conscience.uThis is another example of a free rider problem individuals unwillingness to share in the cost of a public good.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 31uAn optimal policy is one in which the marginal cost of undertaking the policy equals the marginal benefit of that policy.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 32uShould pollution be totally eliminated?uSome environmentalists say “yes.”uEconomists would answer that doing so is costly so marginal costs should be balanced against marginal benefits.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 33uThe point where MC = MR is called the optimal level of pollution.uOptimal level of pollution the amount of pollution at which the marginal benefit of reducing pollution equals the marginal cost.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 34uA public good is one that is nonexclusive (no one can be excluded from its benefits) and nonrival (consumption by one does not preclude consumption by others.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 35uThere are no pure examples of a public good.lThe closest example is national defense.uTechnology can change the public nature of goods.lRoads are an example.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 36uOnce a pure public good is supplied to one individual, it is simultaneously supplied to all.uA private good is only supplied to the individual who bought it.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 37uWith public goods, the focus is on groups.uWith private goods, the focus is on the individual.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 38uIn the case of a public good, the social benefit of a public good is the sum of the individual benefits.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 39uAdding demand curves vertically is easy to do in textbooks, but not in practice.uThis is because individuals do not buy public goods directly so that their demand is not revealed in their actions.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 400.50Price123Quantity.80.60.40.201.00Market demandDBDA0.100.400.100.600.50Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 41uPerfectly competitive markets assume perfect information.uReal-world markets often involve deception, cheating, and inaccurate information.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 42uWhen there is a lack of information, buyers and sellers do not have equal information, markets may not work properly.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 43uEconomists call such market failures adverse selection problems.uAdverse selection problems problems that occur when a buyer or a seller have different amounts of information about the good for sale.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 44uOne policy alternative to deal with information market failures is to regulate the market and see that individuals provide the correct information.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 45uAnother alternative is for the government to license individuals in the market and require them to provide full information about the good being sold.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 46uRegulatory solutions may be overly slow or costly.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 47uA market in information is one solution to the information problem.uInformation is valuable, and is an economic product in its own right.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 48uLeft on their own, markets will develop to provide information that people need and are willing to pay for it.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 49uEconomists who do not like government interference point out that informational problems are not a problem of the market; it is a problem of government regulation.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 50uLicensing of doctors is a debate that is motivated by information problems.uCurrently all doctors practicing medicine are required to be licensed this was not always so.uLicensing of doctors is justified by informational problems.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 51uSome economists argue that licensing is as much a problem of restricting supply as it is to help the consumer.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 52uWhy, if licensed medical training is so great, do we even need formal restrictions to keep other types of medicine from being practiced?Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 53uWhom do these restrictions benefit: the general public or the doctors who practice mainstream medicine?uWhat have the long-term effects of licensure been?Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 54uAs an alternative, the government could provide the public with information about which treatments work and which do not.lThis would give rise to consumer sovereignty the right of the individual to make choices about what is consumed and produced.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 55uIn this scenario, the government would provide such information as:lGrades in college.lGrades in medical school.lSuccess rate for various procedures.lReferences.lMedical philosophy.lCharges and fees.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 56uThis information alternative would provide much more useful information to the public than the present licensing procedure.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 57uHere are some words of caution about the informational alternative.lTo get a true picture of whether the present system is best would require experts on real-life practices and institutions.lThe problem is that the experts may have a vested interest in keeping things just the way they are.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 58uMarket failures should not automatically call for government intervention.uWhy? Because governments fail too.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 59uGovernment failure occurs when the government intervention in the market to improve the market failure actually makes the situation worse.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin15 - 60uGovernments do not have an incentive to correct the problem.uGovernments do not have the information to deal with the problem.uIntervention in the markets is almost always more complicated than it initially looks.Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw