CHAP17Income-Distribution-and-Welfare-Programs-公共金.ppt
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1、Prepared by:FERNANDO QUIJANO,YVONN QUIJANO,KYLE THIEL&APARNA SUBRAMANIAN17Income Distribution and Welfare Programs 2007 Worth Publishers Public Finance and Public Policy,2/e,Jonathan GruberPublic Finance and Public Policy,2/eJonathan GruberChapter 17 Income Distribution and Welfare Programs 2007 Wor
2、th Publishers Public Finance and Public Policy,2/e,Jonathan Gruber17.5 Welfare ReformIncome Distribution and Welfare Programs17.3 The Moral Hazard Costs of Welfare Policy17.2 Welfare Policy in the United States17.1 Facts on Income Distribution in the United StatesChapter 1717.4 Reducing the Moral Ha
3、zardof Welfare17.6 ConclusionOn August 22,1996,President Bill Clinton signed into law the Personal Responsibility and Work Opportunity Reconciliation Act of 1996(PRWORA),more commonly known as the welfare reform law.Before this law,cash welfare in the United States was a system in which states recei
4、ved matching grants to provide time-unlimited benefits to low-income single mothers.After the law,states received a lump-sum block grant,a flat amount,independent of state spending on welfare,earmarked to provide time-limited benefits to a broader range of low-income families.Chapter 17 Income Distr
5、ibution and Welfare Programs 2007 Worth Publishers Public Finance and Public Policy,2/e,Jonathan GruberIncome Distribution and Welfare ProgramsChapter 17 Income Distribution and Welfare Programs 2007 Worth Publishers Public Finance and Public Policy,2/e,Jonathan GruberFacts on Income Distribution in
6、 the United States17.1Relative Income Inequalityrelative income inequalityThe amount of income the poor have relative to the rich.Chapter 17 Income Distribution and Welfare Programs 2007 Worth Publishers Public Finance and Public Policy,2/e,Jonathan GruberChapter 17 Income Distribution and Welfare P
7、rograms 2007 Worth Publishers Public Finance and Public Policy,2/e,Jonathan GruberFacts on Income Distribution in the United States17.1Absolute Deprivation and Poverty Ratesabsolute deprivation The amount of income the poor have relative to some measure of“minimally acceptable”income.poverty line Th
8、e federal governments standard for measuring absolute deprivation.Chapter 17 Income Distribution and Welfare Programs 2007 Worth Publishers Public Finance and Public Policy,2/e,Jonathan GruberFacts on Income Distribution in the United States17.1Absolute Deprivation and Poverty RatesChapter 17 Income
9、 Distribution and Welfare Programs 2007 Worth Publishers Public Finance and Public Policy,2/e,Jonathan GruberFacts on Income Distribution in the United States17.1Absolute Deprivation and Poverty RatesChapter 17 Income Distribution and Welfare Programs 2007 Worth Publishers Public Finance and Public
10、Policy,2/e,Jonathan GruberChapter 17 Income Distribution and Welfare Programs 2007 Worth Publishers Public Finance and Public Policy,2/e,Jonathan GruberFacts on Income Distribution in the United States17.1What MattersRelative or Absolute Deprivation?Once the poor can reach an acceptable level of con
11、sumption,why does it matter how much money the rich have?There are two reasons why relative income inequality measures may matter:The“minimal”standard of living for a society may be best defined relative to the standard of living of others.The level of inequality in society is itself negatively rela
12、ted to measures of well-being.A recent study by Luttmer(2004)also finds that individuals self-reported well-being rises as their own income rises,but falls as their neighbors incomes rise,suggesting that it is relative income,and not absolute income,that determines well-being.Chapter 17 Income Distr
13、ibution and Welfare Programs 2007 Worth Publishers Public Finance and Public Policy,2/e,Jonathan GruberWelfare Policy in the United States17.2categorical welfare Welfare programs restricted by some demographic characteristic,such as single motherhood or disability.In discussing welfare policy,it is
14、important to understand two characteristics of each policy:1.Categorical and Means-Tested Programs:means-tested welfare Welfare programs restricted only by income and asset levels.Chapter 17 Income Distribution and Welfare Programs 2007 Worth Publishers Public Finance and Public Policy,2/e,Jonathan
15、GruberChapter 17 Income Distribution and Welfare Programs 2007 Worth Publishers Public Finance and Public Policy,2/e,Jonathan GruberWelfare Policy in the United States17.2benefit guarantee The cash welfare benefit for individuals with no other income,which may be reduced as income increases.The TANF
16、 program provides support to low-income families with children in which one biological parent is absent.benefit reduction rate Therate at which welfare benefits are reduced per dollar of other income earned.Cash Welfare ProgramsTemporary Assistance for Needy Families(TANF)SSI is a program that provi
17、des cash welfare to the aged,blind,and disabled.Supplemental Security Income(SSI)Chapter 17 Income Distribution and Welfare Programs 2007 Worth Publishers Public Finance and Public Policy,2/e,Jonathan GruberChapter 17 Income Distribution and Welfare Programs 2007 Worth Publishers Public Finance and
18、Public Policy,2/e,Jonathan GruberWelfare Policy in the United States17.2The public housing system in the United States consists of two separate programs:Public housing projects,typically large apartment buildings.“Section 8 vouchers,”which individuals can use to subsidize private rentals from partic
19、ipating landlords.Benefits are restricted to low-income families,typically those with incomes below 50%of the median income in a metropolitan area.In-Kind ProgramsPublic HousingOther Nutritional ProgramsSpecial Supplemental Nutrition Program for Women,Infants,and Children(WIC),which provides funds f
20、or nutritious food purchases.Women who are pregnant or recent mothers,as well as children under five years old,are eligible if they are on cash welfare,are on Medicaid,or have incomes below 185%of the poverty line.Chapter 17 Income Distribution and Welfare Programs 2007 Worth Publishers Public Finan
21、ce and Public Policy,2/e,Jonathan GruberThe Moral Hazard Costs of Welfare Policy17.3This system is a simplified version of TANF or other redistributive programs,but it allows us to clearly show the effects of moral hazard that come with redistribution.The benefit to any individual would be equal to:
22、Moral Hazard Effects of a Means-Tested Transfer SystemChapter 17 Income Distribution and Welfare Programs 2007 Worth Publishers Public Finance and Public Policy,2/e,Jonathan GruberChapter 17 Income Distribution and Welfare Programs 2007 Worth Publishers Public Finance and Public Policy,2/e,Jonathan
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