Overview.- Inequality, Poverty, and Welfare: Social Welfare and Income Distributions.- Inequality and Poverty Indexes.- Welfare and Efficiency: Inequality, Efficiency, and the Production Sphere.- Efficiency and Welfare.- Information Incentives and Performance.- Summary Example and Numerical Simulations: A Summary Example.- Implementing the Example: One Time Period.- Dynamics: Many Time Periods.- Final Remarks.- Appendix: Implementing 2008 Income Data...