Discuss the following statement effectively:
"Modern Economic Challenge for Public Policy is not just to Increase the
Size of the Pie but also to evenly Distribute the Pie" - The Case of
Income Inequality in Australia

 

1) Introduction (4 marks)
The introductory section should present income inequality as a major public policy
problem in Australia using concepts of efficiency, equity, market economy and market
failure.
2) Literature Review (4 marks)
The literature review should discuss at least 5 important papers/research on this topic in
line with the essay statement.
3) Theoretical Framework (4 marks)
You will need to link the essay topic with the public sector economics theory covered in
the lectures. Important theoretical concepts like Pareto efficiency, social choice theories,
etc. are the guiding theories for this essay. Please include at least one relevant diagram
understood from your lectures to showcase the theoretical framework.
4) Data on Measures/Indicators of Public Sector Size (4 marks)
This section should present the data and statistics on different measures and indicators of
income inequality in Australia as you have learnt in the lectures

 

5) Conclusion(s) and Policy Recommendation(s) (4 marks)
Based on youranalysis of the previous sections, you should make some concluding remarks
on the validity/non-validity of the essay statement as well as suggest some policy
recommendations around solving the problem of income inequality.
6) References
All the references must be ordered in an alphabetical order and should be well cited in
the text. No marks have been allocated for proper referencing. However, improper
referring will result in the maximum loss of 2 marks.
Word Limit: 3000 words (does not include the references) (+/- 10%) (Strict)