The Need for Formal Social Safety Nets

Mohammad Ashraf ()

Chapter Chapter 2 in Formal and Informal Social Safety Nets, 2014, pp 13-30 from Palgrave Macmillan

Abstract: Abstract A hypothetical situation: The economy of California is booming due to the public’s renewed interest in movies. A plumber moves from Iowa to California. His skills are better suited for the kind and quality of plumbing done in California. As a result, his skills can carry a higher price in California as compared with Iowa. He is better off because he earns higher wages and the Californians are better off because they get the kind of service they want. His car breaks down, and he takes his car to a car mechanic. The car mechanic goes to a dentist when her tooth starts hurting. Her dentist finds that the cause of pain is her wisdom tooth and it needs extraction. Before extraction, the dentist gives the mechanic a sedative produced by a pharmaceutical firm. The owner of the pharmaceutical firm takes her kids to watch a movie made in a studio in Hollywood in which actors, directors, camera operators, and so on1 from practically all over the world have participated.

Keywords: Comparative Advantage; Tree Branch; Modern Economy; Borrowing Constraint; Increase Population Size (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-38874-2_2

Ordering information: This item can be ordered from
http://www.palgrave.com/9781137388742

DOI: 10.1057/9781137388742_2

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().