Income Inequality among Old Chinese Katja Hanewald, Ruo Jia, Zining Liu, Oct 16, 2019
Income Inequality among Old Chinese Katja Hanewald, Ruo Jia, Zining Liu, Oct 16, 2019 Using data from the China Health and Nutrition Survey (CHNS) from 1991–2015, we decompose the income inequality among old Chinese and compare the income inequality between old households and young households. We develop an OLG model and a new empirical method to test how initial socioeconomic differences transmit to income inequality in the working years and then in old age. We find that the urban-rural gap and educational differences are the two most important factors leading to income inequality among the old. We also find that income inequality accumulates with age in China and is reinforced in old age by the fragmented Chinese public pension system.
The Long-Run Trend of Residential Investment in China Ding Ding, Weicheng Lian, Oct 09, 2019 Residential investment has been a key growth engine for China in the last two decades. Total housing investment grew from about 4 percent of GDP in 1997 to a peak of 15 percent of GDP in 2014, with residential investment accounting for more than two-thirds of it. Our analysis indicates that structural changes in the Chinese economy that led to rebalancing toward consumption...
Internal Capital Markets in Business Groups and the Propagation of Credit Supply Shocks Yu Shi, Robert Townsend, Wu Zhu, Sep 25, 2019 Using business registry data from China, we show that internal capital markets in business groups can propagate corporate shareholders' credit supply shocks to their subsidiaries. An average of 16.7% local bank credit growth where corporate shareholders are located would increase subsidiaries investment by 1% of their tangible fixed asset value, which accounts for 71% (7%) of the median (average) investment rate among these firms...
Industrial Policy: Lessons from China Panle Jia Barwick, Myrto Kalouptsidi, Nahim Bin Zahur, Sep 18, 2019 This paper examines an important industrial policy in China in the 2000s that aims to propel the country's shipbuilding industry to the largest globally. Using comprehensive data on shipyards worldwide and a dynamic model of firm entry, exit, investment, and production, we find that the scale of the policy was massive and boosted China's domestic investment, entry, and world market share dramatically. On the other hand, it created sizable distortions and led to increased industry fragmentation and idleness.