scholarly journals The Price of Growth: Consumption Insurance in China 1989–2009

2018 ◽  
Vol 10 (4) ◽  
pp. 1-35 ◽  
Author(s):  
Raül Santaeulàlia-Llopis ◽  
Yu Zheng
Keyword(s):  
Economic Growth ◽  
Growth Process ◽  
Income Shocks ◽  
Income Risk ◽  
Welfare Assessment ◽  
Household Level ◽  
Consumption Insurance ◽  
First Order ◽  
Income Data ◽  
Growing Economy

We exploit a novel and unique opportunity to document the transmission of income risk to consumption in a growing economy. Our laboratory is China, an economy that has witnessed enormous and sustained growth. We build a long panel of household-level consumption and income data. We find that consumption insurance deteriorates along the growth process with a transmission of permanent income shocks to consumption that at least triples from 1989 to 2009. Although preliminary, our welfare analysis suggests that the loss of consumption insurance can have first-order implications for the welfare assessment of economic growth. (JEL D12, E21, O12, O47, P24, P25, P36)

scholarly journals On the welfare cost of consumption fluctuations in the presence of memorable goods

2020 ◽  
Vol 11 (4) ◽  
pp. 1177-1214 ◽  
Author(s):  
Rong Hai ◽  
Dirk Krueger ◽  
Andrew Postlewaite
Keyword(s):  
Borrowing Constraints ◽  
Welfare Cost ◽  
Income Shocks ◽  
Income Risk ◽  
Household Level ◽  
Nondurable Goods ◽  
Empirical Estimates ◽  
Percentage Points ◽  
Consumption Fluctuations ◽  
Excess Sensitivity

We propose a new category of consumption goods, memorable goods, that generate a utility flow even after physical consumption. Empirically, memorable goods expenditures exhibit frequent zero monthly purchases and lumpy expenditure spikes. Memorable goods expenditures are 20% the size of nondurable expenditures, but three times as volatile. We then develop a consumption‐savings model with borrowing constraints and income risk that formalizes the notion of memorable goods and distinguishes them from other nondurable goods. We show that consumers optimally choose lumpy consumption of memorable goods. We then measure the welfare cost of consumption fluctuations using our calibrated model and empirically evaluate our calibrated model's predictions for the consumption response to predictable income changes. We find that the welfare cost of household‐level consumption fluctuations induced by income shocks fall from 20.4 to 12.3 percentage points if memorable goods are accounted for, and that empirical estimates of excess sensitivity of consumption may significantly be driven by memorable goods expenditures.

scholarly journals Multi-faceted insights of entrepreneurship facing a fast-growing economy: A literature review

2020 ◽  
Vol 3 (1) ◽  
pp. 25-41 ◽  
Author(s):  
Quan Hoang Vuong ◽  
Viet Phuong La ◽  
Thu Trang Vuong ◽  
Phuong Hanh Hoang ◽  
Manh Toan Ho ◽  
...  
Keyword(s):  
Economic Growth ◽  
Literature Review ◽  
Emerging Economies ◽  
Research Output ◽  
Middle Income Country ◽  
Developing Economy ◽  
Middle Income ◽  
Entrepreneurship Research ◽  
Rapid Economic Growth ◽  
Growing Economy

AbstractThis study explores entrepreneurship research in Vietnam, a lower-middle-income country in Southeast Asia that has witnessed rapid economic growth since the 1990s but has nonetheless been absent in the relevant Western-centric literature. Using an exclusively developed software, the study presents a structured dataset on entrepreneurship research in Vietnam from 2008 to 2018, highlighting: low research output, low creativity level, inattention to entrepreneurship theories, and instead, a focus on practical business matters. The scholarship remains limited due to the detachment between the academic and entrepreneur communities. More important are the findings that Vietnamese research on entrepreneurship, still in its infancy, diverges significantly from those in developed and emerging economies in terms of their content and methods. These studies are contextualized to a large extent to reflect the concerns of a developing economy still burdened by the high financial and nonfinancial costs.

scholarly journals A look-back to the relationship between economic growth and social equality in Vietnam thirty years after the renovation

2014 ◽  
Vol 17 (2) ◽  
pp. 95-104
Author(s):  
Tinh Phu Tran Do ◽  
Duyen My Pham ◽  
Huyen Thanh Nguyen ◽  
Nen Van Nguyen
Keyword(s):  
Economic Growth ◽  
Poverty Alleviation ◽  
Growth Process ◽  
Social Equity ◽  
Living Standard ◽  
Health Care Education ◽  
Social Equality ◽  
Look Back ◽  
The Relationship

This paper focuses on analyzing the achievements and limitations of Vietnam in the implementation of social equity in the economic growth process after the renovation in 1986. Economic growth generated capital to invest in social welfare, more income and opportunities for people to enjoy a prosperous life. However, besides above achievements, there still remain many limitations, such as: unsustainable development in income, living standard and poverty alleviation; low quality of health care, education and entertainment services. Based on the analysis of the causes of the limitations, this paper proposed the orientations for solving the relationship between the economic growth and social equality in Vietnam in the future.

Cittŕ europee nella rete globale

TERRITORIO ◽  
2012 ◽  
pp. 16-16
Author(s):  
Roberta Cucca ◽  
Costanzo Ranci
Keyword(s):  
Economic Growth ◽  
Social Inequality ◽  
Growth Process ◽  
Social Impact ◽  
Urban Systems ◽  
Economic Role ◽  
Development Models ◽  
Common Features ◽  
Initial Hypothesis ◽  
Central Economic

This paper considers various types of social impact from the economic growth process experienced by several European urban systems, shortly before the spread of the crises still in progress. The collection opens with an essay that transversally analyses several mechanisms that show economic growth and social inequality as connected or disconnected to one other. This line of thought is further developed by reconstructing four cases of more specific study (Barcelona, Copenhagen, Lyon and Monaco) that describe contexts that are similar because they play a certain central economic role in their respective national contexts and hold powerful transnational positions, but which belong to different welfare models. A portrait emerges marked by several common features and many points of differentiation, confirming the initial hypothesis, i.e., the importance of examining development models for cities.

Conclusion and Recommendations

2014 ◽  
pp. 226-238
Keyword(s):  
Economic Growth ◽  
Growth Process ◽  
Financial Sector ◽  
Policy Implications ◽  
Future Research ◽  
Financial Sector Development ◽  
Research Findings ◽  
Potential Channels

This book started with a brief review of different outlooks on the role of financial sector development in the process of economic growth. Then it highlighted the fact that recent studies, particularly those originating from modern growth theory, suggest that financial intermediation affects growth through various channels. To test this proposition, an empirical model was built, data were obtained, empirical tests were carried out, and results were discussed. The final chapter in this book, therefore, summarises key research findings and discusses the potential channels through which financial sector development affects the economic growth process. The chapter further highlights contributions of this research to growth studies, discusses policy implications arising from the findings of this research, and provides directions for future research and analysis.

scholarly journals Consumption insurance with advance information

2020 ◽  
Vol 11 (2) ◽  
pp. 671-711
Author(s):  
Christian A. Stoltenberg ◽  
Swapnil Singh
Keyword(s):  
Limited Commitment ◽  
Insurance Markets ◽  
Income Shocks ◽  
Complete Markets ◽  
Consumption Insurance ◽  
Current Consumption ◽  
The Us ◽  
Advance Information ◽  
Future Income ◽  
Saving Decisions

This paper investigates whether assuming that households possess advance information on their income shocks helps to overcome the difficulty of standard models to understand consumption insurance in the US. As our main result, we find that the quantitative relevance of advance information crucially depends on the structure of insurance markets. For a realistic amount of advance information, a complete markets model with endogenous solvency constraints due to limited commitment explains several key consumption insurance measures better than existing models without advance information. In contrast, when advance information is integrated into a standard incomplete markets model, it affects household consumption‐saving decisions too little to bridge the gap between the model and the data and can induce counterfactual correlations between current consumption growth and future income growth.

scholarly journals Uncovering CO2 Emissions Patterns from China-Oriented International Maritime Transport: Decomposition and Decoupling Analysis

2019 ◽  
Vol 11 (10) ◽  
pp. 2826 ◽  
Author(s):  
Hualong Yang ◽  
Xuefei Ma
Keyword(s):  
Economic Growth ◽  
Co2 Emissions ◽  
Mitigation Strategies ◽  
Maritime Transport ◽  
Trade Volume ◽  
Maritime Industry ◽  
Logarithmic Mean ◽  
Factors Affecting ◽  
Decoupling Analysis ◽  
Growing Economy

Given that most commodity transportation depends on the maritime industry, the growing economy and increasing international trade volume are expected to accelerate the development of shipping activities and thus increase associated CO2 emissions. In order to identify the driving factors of CO2 emissions from China’s international shipping and find efficient mitigation strategies, this paper first estimates the CO2 emissions and presents the CO2 emissions features from 2000 to 2017. Second, the Logarithmic Mean Divisia Index (LMDI) method is applied to decompose the changes in CO2 emissions. Finally, the decoupling index is introduced to quantitatively examine the decoupling relationship between economic growth and CO2 emissions. The factors affecting the decoupling relationship are analyzed according to the LMDI results. The results indicate that CO2 emissions in maritime transport activities have experienced rapid growth during the study period. Economic growth appears to be the principal factor driving the CO2 emissions growth, whereas the overall effects of energy intensity and the commodity structure play a significant role in inhibiting CO2 emissions. The decoupling state over the study period has experienced four decoupling stages, with a distinct tendency towards weak decoupling. Economic activity has proven to be the most significant indicator influencing the decoupling relationship during the study period.

scholarly journals Tax Reform and Automatic Stabilization

2002 ◽  
Vol 92 (3) ◽  
pp. 411-433 ◽  
Author(s):  
Thomas J Kniesner ◽  
James P Ziliak
Keyword(s):  
Income Tax ◽  
Panel Study ◽  
Welfare Cost ◽  
Risk Averse ◽  
Income Dynamics ◽  
Income Risk ◽  
Tax Reforms ◽  
Automatic Stabilization ◽  
Consumption Insurance ◽  
Federal Income Tax

An income tax provides implicit insurance by dampening the variability of disposable income and consumption. Using an empirical framework derived from the consumption insurance literature and data from the Panel Study of Income Dynamics we examine the effect of federal income tax reforms of the 1980's on automatic stabilization of consumption. Overall, ERTA and TRA86 reduced consumption stability by about 50 percent. Recently increased EITC generosity restored or enhanced consumption insurance. The welfare cost of moving to the post-TRA86 system is sizable for relatively risk-averse households facing large income risk but is much more modest for the typical household.

SOLOW'S RETURN: INVENTIONS, IDEAS AND THE QUALITY OF LIFE

2012 ◽  
Vol 03 (02) ◽  
pp. 1250009
Author(s):  
CHARLES KENNY
Keyword(s):  
Quality Of Life ◽  
Economic Growth ◽  
Empirical Evidence ◽  
Growth Process ◽  
Diffusion Of Technology ◽  
Income Divergence ◽  
Role Concerns ◽  
Global Growth

Robert Solow's model of "exogenous" economic growth driven by the global diffusion of technology is out of fashion because it is contradicted by empirical evidence of income divergence. Today, economic growth is considered "endogenous" and institutions are seen as central to the long-term growth process. At the same time, non-income measures of quality of life do see strong patterns of global growth and convergence. This suggests that institutions may be less important to achieve progress in broader quality of life while a larger and important role concerns the factors that drive exogenous change, including the flow of technology and ideas.

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