FARE 1300 Chapter Notes - Chapter 17: International Monetary Fund, Progressive Tax, Redistribution Of Income And Wealth

• School: University of Guelph
• Department: Food, Agricultural and Resource Economics
• Course: FARE 1300
• Professor: Andreas Boecker

Document Summary

Lecture 14 policies that raise the incomes of the poor. Policies that redistribute income or wealth: international aid, progressive transaction, minimum wage laws, land reform. The central roles of institution: formal rules law and regulations, industry self-regulation, informal rules norms/cultural traditions, conventions and codes of conduct, the framework of enforcement for both, effective institutions reduce uncertainty and transaction costs. International aid long going debate about how effective it is. Either has official aid from governments or can be unofficial from donations/organizations. The supply curve is shifted outwards (right), it says that for the given price there will be an increase in supply. The economy will be able to produce more and more is available. This allows for prices to go down while increasing supply. A concern with this is post harvest losses due to climate. Taxation for example: progressive income tax, value-added/luxury tax, export taxes. All three have notable effects on the food market.