Question

Traditionally we look at the distribution of consumption as a fairness concern, not an efficiency concern. Why is that the case? Is there a perspective from which income distribution looks like a public good (or the result of a public good)? [Hint: the book offers one in a later chapter and public discourse may offer additional.] Why can education or knowledge be considered a public good? Note a good that is partially rival, excludable and reproducible can be efficiently provided for as a club good in which there is a charge for both membership and usage. Using these two results, Milton Friedman once argued that there was a strong case for subsidized education, but not necessarily publicly provided education. Defend his claim. If there is a limit to his logic what is it?

Answer 1

Answer)

Generally distribution of consumption is used to identify the economic inequality. Distribution of Consumption is used to determine the quantity of products sold and does not tell about the segment of consumers who are consuming it. Consumption of distribution acts as an alternative to the Income distribution for measuring economic inequality. Equal distribution of wealth is essential for sustainable economic growth of any country. So consumption distribution does not give the full information about economic inequality. Income distribution much better explain the economic inequality in comparison to consumption distribution. Income distribution tells the distribution of wealth among different segment of peoples.