3) Inequality and Poverty Flashcards
1
Q
Pareto improvement?
A
- by changing the allocation of the goods, we can make some better off and no one worse off
2
Q
First welfare theorem?
A
-everyone’s MRS is equal as everyone is equal to price ratio
-that a competitive market equilibrium delivers a Pareto efficient allocation of resources.
3
Q
How to counter selection bias?
A
-Randomized controlled trial
-large sample
4
Q
What is selection bias?
A
-treatment can have different effects
- as groups are different to begin with
5
Q
selection bias equation 2 pieces?
A
-Treatment Works Differently
-Pre-existing Differences
6
Q
What does a large sample mean?
A
-Pre existing differences is 0 (effect without degree)
7
Q
What are spill overs?
A
-when untreated get benefits
8
Q
How to fix spill overs-?
A
-better design/ more groups
