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Chapter 19
Efficiency vs,Equality,
The Big Trade-off
McGraw-Hill/Irwin Copyright ? 2001 The McGraw-Hill Companies,Inc,All rights reserved,
Lorenz Curve Shows
Income Inequality
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Figure 19-1
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Inequity Differs in Different Societies and Is
Greater for Wealth Than for Income
T-138
Figure 19-2
Source,Federal Reserve Board,Survey of Consumer Finances,Washington,D.C.,1989; A.B,Atkinson and A.J,Harrison,
“Trends in the Distribution of Wealth in Britain,” in A.B,Atkinson,ed,Wealth,Income and Inequity
(Oxford University Press,Londo,1980); World Development Report 1993,
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Inequality in Different Countries
T-139
Figure 19-3
Source,Koen Vleminckx,Luxembourg Income Study,August 1998,avai able on th Internet,
McGraw-Hill/Irwin Copyright ? 2001 The McGraw-Hill Companies,Inc,All rights reserved,
Trends in Inequality in the
United States,1929-1994
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Figure 19-4
Source:U.S,Bureau of the Census,with historical serie spliced togethe by authors,
McGraw-Hill/Irwin Copyright ? 2001 The McGraw-Hill Companies,Inc,All rights reserved,
Redistributing Income May Harm
Economic Efficiency
T-141
Figure 19-5
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Welfare Cases and Unemployment,
1970-1998
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Figure 19-6
Source,Council of Economic Advisers,The welfare participation rate is the
number of welfare recipients divided by the population,
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Free Health Care Guarantees
Nonprice Rationing
T-143
Figure 19-7