1 / 18

In other words, she is talking about the work disincentive effects of the English poor laws.

“Aye, that is the way Effingham. Thus is our pauper list swelled, year by year. It grows at both ends. Paupers multiple their own numbers as fast as they can, and rate-payers sink down into rate-receivers .”.

hillary-french
Télécharger la présentation

In other words, she is talking about the work disincentive effects of the English poor laws.

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. “Aye, that is the way Effingham. Thus is our pauper list swelled, year by year. It grows at both ends. Paupers multiple their own numbers as fast as they can, and rate-payers sink down into rate-receivers.” Harriet Martineau is talking about paupers choosing not to work because of the English poor laws and taxpayers being driven to bankruptcy because of their cost. In other words, she is talking about the work disincentive effects of the English poor laws.

  2. The Hours of Work Decision • On a beautiful Southern California morning, Brendan drove his Porsche up the Pacific Coast Highway, stopping for lunch at a café overlooking the ocean. After finishing his bean salad (with walnuts and feta), he opened up Dreaming in Code, flipped to the first page and started reading. • The story begins when the author was 15 years old and spending gobs of time in NYU’s computer labs, free-coding on their dime. Even then, the guy was passionate about writing code: he thought about it constantly, even dreamt about it. Brendan thought about the time he spent in UCLA’s computer labs—he remembered being obsessed with many of his programs, although he couldn’t remember ever dreaming in code. It was a good time in his life, especially when he was together with Meghan. • After reading the first chapter, Brendan flipped back to the beginning and looked at its title, Software Time. He suddenly felt empty, living a life without purpose, alone without Meghan. “Software time, Meghan time,” he thought, “ran out for me when I left UCLA.” • It was an epiphany, one that radically altered his indifference curves between leisure and labor—he went from being a leisure-loving, beach bum to a labor-loving, lab nerd. Driving back to LA along the Pacific Coast Highway, he called a couple of friends who majored in computer science and, with his heart pounding, Meghan.

  3. A few days later, Brendan called the trustee of his trust fund to tell her to donate his daily stipend of $200 per day to the Halo Trust, both because he believed in its mission—clearing Africa of land mines—and because he knew it would strengthen the work incentive effects of his trust fund. Illustrate how he reacted to the change, assuming that leisure is a normal good.

  4. Money Income ($ per day) slope U1 T Leisure (hours per day)

  5. Money Income ($ per day) slope U1 T Leisure (hours per day)

  6. Money Income ($ per day) slope U1 U2 T Leisure (hours per day)

  7. Illustrate the income and substitution effects of the provision of Brendan’s trust fund that gives him a dollar for every dollar of earnings holding the stipend constant at $200 per day.

  8. Money Income ($ per day) slope slope U1 T Leisure (hours per day)

  9. Money Income ($ per day) Wage Effect with the Income Effect Dominating slope slope U2 U1 T Leisure (hours per day)

  10. Money Income ($ per day) slope slope U1 T Leisure (hours per day)

  11. Money Income ($ per day) Wage Effect with the Substitution Effect Dominating slope U2 slope U1 T Leisure (hours per day)

  12. Money Income ($ per day) slope U2 slope U1 T Leisure (hours per day)

  13. Money Income ($ per day) slope U2 slope U1 T Leisure (hours per day)

  14. Money Income ($ per day) slope U2 slope U1 T Leisure (hours per day)

  15. Money Income ($ per day) slope U2 slope U1 T Leisure (hours per day)

  16. Money Income ($ per day) slope U2 slope U1 T Leisure (hours per day)

  17. Money Income ($ per day) slope U2 slope U1 T Leisure (hours per day)

  18. Hypothetical budget constraint—original utility, new wage Money Income ($ per day) The substitution effect: to The income effect: to slope U2 slope U1 T Leisure (hours per day)

More Related