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FIFTY YEARS OF REGIONAL INEQUALITY IN CHINA: A JOURNEY THROUGH REVOLUTION, REFORM AND OPENNESS AgEcon
Kanbur, Ravi; Zhang, Xiaobo.
This paper constructs and analyses a long run time series for regional inequality in China from the Communist Revolution to the present. There have been three peaks of inequality in the last fifty years, coinciding with the Great Famine of the late 1950s, the Cultural Revolution of the late 1960s and 1970s, and finally the period of openness and global integration in the late 1990s. Econometric analysis establishes that regional inequality is explained in the different phases by three key variables--the ratio of heavy industry to gross output value, the degree of centralization, and the degree of openness.
Tipo: Working or Discussion Paper Palavras-chave: Inequality; Polarisation; Decentralization; Industrialization; Openness; Globalization; Chinese economy; Political Economy; D63; 018; P27.
Ano: 2001 URL: http://purl.umn.edu/7236
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Climate Policy When the Distant Future Matters: Catastrophic Events with Hyperbolic Discounting AgEcon
Karp, Larry S.; Tsur, Yacov.
Low probability catastrophic climate change can have a significant influence on policy under hyperbolic discounting. We compare the set of Markov Perfect Equilibria (MPE) to the optimal policy under time-consistent commitment. For some initial levels of risk there are multiple MPE; these may involve either excessive or insufficient stabilization effort. These results imply that even if the free-rider problem amongst contemporaneous decision-makers were solved, there may remain a coordination problem amongst successive generations of decision-makers. A numerical example shows that under plausible conditions society should respond vigorously to the threat of climate change.
Tipo: Working or Discussion Paper Palavras-chave: Abrupt climate change; Event uncertainty; Catastrophic risk; Hyperbolic discounting; Markov Perfect Equilibria; Environmental Economics and Policy; Risk and Uncertainty; C61; C73; D63; D99; Q54.
Ano: 2007 URL: http://purl.umn.edu/7186
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Peer Effect, Risk-Pooling and Status Seeking: Which Matters to Gift Spending Escalation in Rural China? AgEcon
Chen, Xi; Zhang, Xiaobo.
This paper is based on our ongoing joint work with Ravi Kanbur. Xi Chen is grateful to Ravi Kanbur for invaluable comments, guidance and encouragement. For comments and suggestions, please direct correspondence to Xi Chen at xc49@cornell.edu.
Tipo: Conference Paper or Presentation Palavras-chave: Social Network; Peer Effect; Risk-pooling; Status Seeking; Gift-giving; Ceremony; Agricultural and Food Policy; Agricultural Finance; Community/Rural/Urban Development; Consumer/Household Economics; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; Food Security and Poverty; Institutional and Behavioral Economics; International Development; Public Economics; Research Methods/ Statistical Methods; Risk and Uncertainty; I32; J22; D13; D63.
Ano: 2011 URL: http://purl.umn.edu/103643
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Relative Income, Network Interactions and Social Stigma AgEcon
Chen, Xi; Zhang, Xiaobo.
Blood donation with compensation is considered as a social stigma. However, more people in the reference group donate blood often leads to less moral concern and more followers. Therefore, the behavior is likely to be influenced through one’s interactions with neighbors, friends and relatives. Meanwhile, relative income may affect the motives for blood donation through increasing mistrust and stress. The motives might be stronger for households of lower social rankings. Utilizing three-wave census-type panel data in 18 villages in rural western China, two identification strategies, instrumental variable and network-based identification, are implemented to estimate the effect of social interactions. Both community-specific and household-specific relative...
Tipo: Conference Paper or Presentation Palavras-chave: Blood Donation; Social Interactions; Inequality; Relative Income; China; Agricultural and Food Policy; Institutional and Behavioral Economics; Political Economy; JEL: I32; J22; D13; D63.
Ano: 2010 URL: http://purl.umn.edu/90796
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Blood for Social Status: Preliminary Evidence from Rural China AgEcon
Chen, Xi; Zhang, Xiaobo.
Xi Chen acknowledges generous Doctoral Research Grant from the Institute for the Social Sciences at Cornell University and precious data set provided by the Development Strategy and Governance Division at IFPRI. Conference Travel Grant provided by the Department of Applied Economics and Management at Cornell is also acknowledged. We are grateful to Ravi Kanbur for invaluable comments, guidance and encouragement. This paper also benefited from helpful discussion and invaluable comments from Robert Frank, David Sahn, Marc Rockmore, and seminar participants in the Department of Economics at Cornell. Due to time limit, I have not incorporated all helpful comments and suggestions in this early draft paper. The views expressed herein and any remaining errors...
Tipo: Conference Paper or Presentation Palavras-chave: Blood Donation; Social Status; Poverty; Inequality; Relative Deprivation; Rural China; Agricultural and Food Policy; Community/Rural/Urban Development; Consumer/Household Economics; Demand and Price Analysis; Health Economics and Policy; Institutional and Behavioral Economics; International Development; Labor and Human Capital; Political Economy; Production Economics; Public Economics; Research Methods/ Statistical Methods; Risk and Uncertainty; I32; J22; D13; D63.
Ano: 2009 URL: http://purl.umn.edu/49411
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Integration, social distress, and policy formation AgEcon
Stark, Oded.
I study the integration of regions in the form of a merger of populations, which I interpret as a revision of people’s social space and their comparison set; I illustrate the way in which a merger can aggravate social distress; and I consider policy responses. Specifically, I view the merger of populations as a merger of income vectors; I measure social distress by aggregate relative deprivation; I demonstrate that a merger increases aggregate relative deprivation; and I show that a social planner is able to reverse this increase by means of least-cost, post-merger increases in individual incomes, but is unable to counter it by relying exclusively on a self-contained income redistribution that retains individual levels of wellbeing at their pre-merger...
Tipo: Working Paper Palavras-chave: Integration of regions; Merger of populations; Revision of social space; Aggregate relative deprivation; Social distress; Policy responses; Community/Rural/Urban Development; International Relations/Trade; D04; D63; F55; H53; P51.
Ano: 2012 URL: http://purl.umn.edu/120179
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Sustainability and Optimality in Economic Development: Theoretical Insights and Policy Prospects AgEcon
Farzin, Y. Hossein.
This paper takes sustainability to be a matter of intergenerational welfare equality and examines whether an optimal development path can also be sustainable. It argues that the general “zero-net-aggregate-investment” condition for an optimal development path to be sustainable in the sense of the maximin criterion of intergenerational justice is too demanding to be practical, especially in the context of developing countries. The maximin criterion of sustainability may be more appealing to the rich advanced industrial countries, but is too costly and ethically unreasonable for developing nations as it would act as an intergenerational “poverty equalizer”. The paper suggests that a compromise development policy that follows the optimal growth approach but...
Tipo: Working or Discussion Paper Palavras-chave: Sustainability; Intergenerational equity; Optimality; Discounting; Development policy; International Development; Q01; Q56; O21; O13; D62; D63.
Ano: 2007 URL: http://purl.umn.edu/7447
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CLIMATE POLICY WHEN THE DISTANT FUTURE MATTERS: CATASTROPHIC EVENTS WITH HYPERBOLIC DISCOUNTING AgEcon
Karp, Larry S.; Tsur, Yacov.
Low probability catastrophic climate change can have a signifcant influence on policy under hyperbolic discounting. We compare the set of Markov Perfect Equilibria (MPE) to the optimal policy under time-consistent commitment. For some initial levels of risk there are multiple MPE; these may involve either excessive or insufficient stabilization effort. These results imply that even if the free-rider problem amongst contemporaneous decision-makers were solved, there may remain a coordination problem amongst successive generations of decision-makers. A numerical example shows that under plausible conditions society should respond vigorously to the threat of climate change.
Tipo: Working or Discussion Paper Palavras-chave: Abrupt climate change; Event uncertainty; Catastrophic risk; Hyperbolic discounting; Markov Perfect Equilibria; Environmental Economics and Policy; C61; C73; D63; D99; Q54.
Ano: 2007 URL: http://purl.umn.edu/7181
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Anatomy of Stigmatized Behavior: Peer Influence and Relative Concern AgEcon
Chen, Xi.
This paper is based on an ongoing joint work with David Sahn and Xiaobo Zhang.
Tipo: Conference Paper or Presentation Palavras-chave: Social Stigma; Peer Influences; Relative Concern; Blood Donation; China; Agricultural and Food Policy; Community/Rural/Urban Development; Consumer/Household Economics; Food Security and Poverty; Health Economics and Policy; Institutional and Behavioral Economics; International Development; Labor and Human Capital; Research Methods/ Statistical Methods; Risk and Uncertainty; JEL: I32; J22; D13; D63.
Ano: 2011 URL: http://purl.umn.edu/103644
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Measuring Social Welfare: A Dog’'s Hind Leg Possibility Postulate AgEcon
Hertzler, Greg.
Our current methods of analysing policies and the distributions of wealth insure that society is on an efficient frontier. This is not the same as a social optimum. To choose the optimal point on the frontier we need a social welfare function. Following the ordinal revolution in demand theory, a large body of research concluded that social welfare functions don't exist. The intensity of people's preferences cannot be observed and hence interpersonal comparisons are essentially impossible. This paper argues that the intensity of people's preferences can be observed and could be incorporated into a social welfare function.
Tipo: Conference Paper or Presentation Palavras-chave: Social welfare; Welfare analysis; Demand systems; Duality; Dynamic optimisation; Consumer/Household Economics; D60; D63.
Ano: 2007 URL: http://purl.umn.edu/10386
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DISCOUNTING AND CLIMATE CHANGE POLICY AgEcon
Karp, Larry S.; Tsur, Yacov.
A constant social discount rate cannot reflect both a reasonable opportunity cost of public funds and an ethically defensible concern for generations in the distant future. We use a model of hyperbolic discounting that achieves both goals. We imbed this discounting model in a simple climate change model to calculate constant equivalent discount rates" and plausible levels of expenditure to control climate change. We compare these results to discounting assumptions and policy recommendations in the Stern Review on Climate Change.
Tipo: Working or Discussion Paper Palavras-chave: Discounting; Climate change modeling; Stern Review; Markov Perfect Equilibria; Environmental Economics and Policy; C61; C73; D63; D99; Q54.
Ano: 2007 URL: http://purl.umn.edu/7149
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Incorporating Fairness Motives into the Impulse Balance Equilibrium and Quantal Response Equilibrium Concepts: An Application to 2x2 Games AgEcon
Tavoni, Alessandro.
Substantial evidence has accumulated in recent empirical works on the limited ability of the Nash equilibrium to rationalize observed behavior in many classes of games played by experimental subjects. This realization has led to several attempts aimed at finding tractable equilibrium concepts which perform better empirically; one such example is the impulse balance equilibrium (Selten, Chmura, 2008), which introduces a psychological reference point to which players compare the available payoff allocations. This paper is concerned with advancing two new, empirically sound, concepts: equity-driven impulse balance equilibrium (EIBE) and equity-driven quantal response equilibrium (EQRE): both introduce a distributive reference point to the corresponding...
Tipo: Working or Discussion Paper Palavras-chave: Fairness; Inequity aversion; Aspiration level; Impulse balance; Quantal Response; Behavioral economics; Experimental economics; Institutional and Behavioral Economics; C72; C91; D01; D63.
Ano: 2009 URL: http://purl.umn.edu/50740
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Livestock Husbandry between Ethics and Economics: Finding a Feasible Way Out by Target Costing? AgEcon
Theuvsen, Ludwig; Essmann, Sandra; Brand-Sassen, Henning.
Livestock husbandry is a major line of conflict in many industrialized countries. Farmers are caught in a dilemma between ethical considerations imposed by, for instance, nongovernmental organizations and the wider public on the one hand and competitive and economic pressures on the other. In this paper we use a target-costing approach to determine whether it is possible to implement more animal-friendly husbandry conditions for turkey fattening in Germany without sacrificing competitiveness. Empirical results show that, at first glance, the willingness on the part of consumers to pay for more animal welfare exceeds the costs to farmers of more animal-friendly husbandry systems. A critical discussion reveals that this result may be flawed by methodological...
Tipo: Conference Paper or Presentation Palavras-chave: Animal welfare; Livestock husbandry; Target costing; Willingness to pay; Livestock Production/Industries; D12; D63; Q12.
Ano: 2005 URL: http://purl.umn.edu/24598
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Time perspective and climate change policy AgEcon
Karp, Larry S.; Tsur, Yacov.
The tendency to foreshorten time units as we peer further into the future provides an explanation for hyperbolic discounting at an intergenerational time scale. We study implications of hyperbolic discounting for climate change policy, when the probability of a climate-induced catastrophe depends on the stock of greenhouse gasses. We provide a positive analysis by characterizing the set of Markov perfect equilibria (MPE) of the intergenerational game amongst a succession of policymakers. Each policymaker reflects her generation’s preferences, including its hyperbolic discounting. For a binary action game, we compare the MPE set to a “restricted commitment” benchmark. We compare the associated “constant equivalent discount rates” and the willingness to pay...
Tipo: Working or Discussion Paper Palavras-chave: Hyperbolic discounting; Markov Perfect Equilibria; Catastrophic climate change; Uncertainty; Environmental Economics and Policy; Resource /Energy Economics and Policy; C61; C73; D63; D99; Q54.
Ano: 2008 URL: http://purl.umn.edu/42848
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Motives for Household Private Transfers in Burkina Faso AgEcon
Kazianga, Harounan.
Resource transfers among households have received considerable interest among economists in recent years. Two of the main reasons for the surge of interest in household transfers are the information on human nature conveyed by transfer behavior and the implication on income redistribution policy that private transfer might have. Empirical studies, however, provide mixed results on transfer behavior. This is because previous inquiries were confronted with several estimation issues and have focused on data from developed countries where private transfers are already small. This paper contributes to the literature on transfer behavior by using a multifaceted econometric approach to examine the motives of household transfers in Burkina, a low-income country...
Tipo: Working or Discussion Paper Palavras-chave: Private transfers; Altruism; Exchanges; Risk sharing; Consumer/Household Economics; D63; D64; I15; I30.
Ano: 2004 URL: http://purl.umn.edu/28463
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Finding Maxmin Allocations in Cooperative and Competitive Fair Division AgEcon
Dall'Aglio, Marco; Di Luca, Camilla.
We consider upper and lower bounds for maxmin allocations of a completely divisible good in both competitive and cooperative strategic contexts. We then derive a subgradient algorithm to compute the exact value up to any fixed degree of precision.
Tipo: Working Paper Palavras-chave: Fair Division; Maxmin Allocation; Kalai Bargaining Solution; Cooperative Game Theory; Research Methods/ Statistical Methods; D63; C61; C71; C78.
Ano: 2011 URL: http://purl.umn.edu/120020
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Do Environmental Services Buyers Prefer Differentiated Rates? A Case Study from the Colombian Andes AgEcon
Moreno-Sanchez, Rocio del Pilar; Maldonado, Jorge Higinio; Wunder, Sven; Borda, Carlos Andres.
Flat user fees in payment for environmental services (PES) schemes promote administrative ease, and are sometimes perceived as egalitarian. However, when environmental service (ES) buyers are heterogeneous in their income and water consumption levels, this may not be optimal, as total payments become too low and services are under-supplied. This paper identifies ES buyer preferences and estimates their willingness to pay (WTP) differentiated fees in an ongoing PES initiative in an Andean watershed in Colombia. Small, flat user payments have recently been introduced to implement incipient watershed protection upstream. Environmental service users fall into two highly heterogeneous categories: smallholder peasants and owners of recreational houses. We...
Tipo: Working or Discussion Paper Palavras-chave: PES; WTP; Environmental services; Colombia; Watershed protection; Community/Rural/Urban Development; Demand and Price Analysis; Resource /Energy Economics and Policy; Q56; Q25; Q5; Q51; C25; D10; D12; D61; D63.
Ano: 2009 URL: http://purl.umn.edu/91171
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The merger of populations, the incidence of marriages, and aggregate unhappiness AgEcon
Stark, Oded; Rendl, Franz; Jakubek, Marcin.
Let a society’s unhappiness be measured by the aggregate of the levels of relative deprivation of its members. When two societies of equal size, F and M, merge, unhappiness in the merged society is shown to be higher than the sum of the levels of unhappiness in the constituent societies when apart; merger alone increases unhappiness. But when societies F and M merge and marriages are formed such that the number of households in the merged society is equal to the number of individuals in one of the constituent societies, unhappiness in the merged society is shown to be lower than the aggregate unhappiness in the two constituent societies when apart. This result obtains regardless of which individuals from one society form households with which individuals...
Tipo: Working or Discussion Paper Palavras-chave: Merger of populations; Integration of societies; Unhappiness; Marriages; Relative deprivation; Institutional and Behavioral Economics; D0; D10; D31; D63.
Ano: 2011 URL: http://purl.umn.edu/109968
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How to Make Institutional Economics Policy-Relevant: Theoretical Considerations and an Application to Rural Credit Markets in Developing Countries AgEcon
Petrick, Martin.
Welfare economics as the traditional, prescriptive theory framework used in agricultural economics has been criticised by institutional economists as being largely irrelevant to real-world policy issues. We therefore ask how normative statements are possible within an economic theory framework that does recognise the importance of institutional arrangements. Instead of applying established outcome-oriented criteria of social welfare, we examine whether the rules of economic interaction allow the acquisition of gains from cooperation. We suggest to reconstruct any interaction as an existing or repealed social dilemma. This approach helps to identify common rule interests which create room for improvement of all parties involved, and to suggest desirable...
Tipo: Conference Paper or Presentation Palavras-chave: Agricultural Finance; Institutional and Behavioral Economics; D02; D63; D74; Q14.
Ano: 2006 URL: http://purl.umn.edu/25702
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Gauging the potential for social unrest AgEcon
Stark, Oded; Hyll, Walter; Behrens, Doris A..
It stands to reason that social unrest does not erupt out of the blue. Although there are a great many reasons why social dismay might descend into social disorder, only few yardsticks or indices can plausibly be used to gauge the potential for social unrest (PSU). If policy makers want to undertake public action to prevent social dismay escalating into social disruption, they obviously need to draw on practical sensors. This paper assesses critically the adequacy of two such measures, the polarization (P) index, and the total relative deprivation (TRD) index. The paper proposes a tentative guide to selecting between these two measures. A review of three stylized scenarios suggests that, where income redistributions reduce the number of distinct income...
Tipo: Working or Discussion Paper Palavras-chave: Social dismay; The potential for social unrest; Polarization; Total relative deprivation; Policy choice; Public Economics; D31; D63.
Ano: 2009 URL: http://purl.umn.edu/53721
Registros recuperados: 46
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