Keyword: distributional effects

This Finance survey examines: A bipartisan bill to cap credit card interest rates at 10% has been introduced recently in the House and the Senate: https://ocasio-cortez.house.gov/media/press-releases/ocasio-cortez-luna-introduce-bill-cap-credit-card-interest-rates-10; (a) Capping credit card interest rates at 10% would make most users measurably better off; (b) Capping credit card interest rates at 10% would lead to a substantial reduction in access to credit for low-income borrowers

This US survey examines: A tolling program for New York City is out for public consultation with proposed charges on vehicles entering the central business district of Manhattan summarized here: https://new.mta.info/document/129191 (a) The proposed tolls on vehicles entering the central business district of Manhattan are likely to lead to a substantial reduction in traffic congestion in the targeted area; (b) The proposed tolls on vehicles entering Manhattan are likely to lead to a substantial increase in traffic congestion just outside the central business district, above 60th Street, in the outer boroughs and New Jersey

This US survey examines (a) An $8 cap on late fees for credit cards, as proposed by the Consumer Financial Protection Bureau, would lead to a substantial reduction in overall costs for consumers; (b) Requiring that all credit card fees and interest rates be transparent, prominently displayed, and easily searchable online would lead to a substantial reduction in overall costs for consumers; (c) Consumers would be measurably better off if efforts to reduce the impact of so-called ‘junk fees’ across the economy concentrated on making fees more transparent than on capping specific types of fees

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This week’s IGM European Economic Experts Panel statements: A) Even with the support policies implemented by European governments in response to the crisis, low-income workers will suffer a relatively bigger hit to their incomes than those further up the distribution. B) With schools across Europe closed in the lockdown, existing gaps in access to quality education between high- and low-income households will be exacerbated. C) Combating the effects of the pandemic on inequality should be a priority for policy interventions.

This week’s IGM Economic Experts Panel statements: A) With the economy in lockdown, low-income workers who are above the poverty line will suffer a relatively bigger hit to their incomes than those further up the distribution (even accounting for all government support schemes). B) With the economy in lockdown, existing gaps in access to quality education between high- and low-income households will be exacerbated. C) The mortality impact of Covid-19 is likely to fall disproportionately on disadvantaged socio-economic groups.

This week’s IGM Economic Experts Panel statement: Taking into account the revenues, consumer surplus, purchasing patterns by income, and possible consumer biases, state-run lotteries (such as Powerball and scratch-off games) increase social welfare.

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