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Title: |
A Macroeconometric Model of Income Disparity
in China |
| Author: |
Shan, Jordan |
| Author
Affiliation: |
Victoria U
Technology and Peking U |
| Source: |
International Economic Journal, Summer 2002, v. 16, no. 2, pp. 47-63 |
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Publication Date: |
Summer 2002 |
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Abstract: |
This paper
examines what impacts, if any, macroeconomic performances and
macroeconomic policy have had on income inequality in China during the
period 1955-1998. A vector autoregression model (VAR) is estimated which
includes measures of macroeconomic performance, such as inflation and
unemployment, and of macroeconomic policy such as money supply and
fiscal expenditure. The VAR techniques, "innovation accounting" and
"Granger causality," are utilized to examine the causal linkage, if any,
between "macro-factors" and income disparity in China. We find that
fiscal spending and unemployment appear to be the most important sources
of change in income dispersion as far as the "macro" factors are
concerned. |
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