The evolution of income and wealth inequality in China

Journal of Economic Dynamics and Control · 2025-09-01

The Evolution of Income and Wealth Inequality in China

SSRN Electronic Journal · 2025-01-01

THE COST OF TRADE DISRUPTIONS AT DIFFERENT STAGES OF DEVELOPMENT

International Economic Review · 2024-02-14 · 6 citations

Abstract We study trade disruptions at different stages of development in a two‐country, three‐sector model of Spain and United Kingdom from 1850 to 2000. The impact of trade disruptions depends on trade openness and the productivity gap between countries. A trade collapse today (more openness, less gap) comparable to the Inter‐War Trade Collapse (IWTC) decreases the capital stock threefold (12% instead of 4%) and lifetime consumption fourfold (1.58% instead of 0.37%). Capital accumulation amplifies the cost of trade disruptions. The IWTC promoted Spanish industrialization, while the opposite would be true today.

Preemptive austerity with rollover risk

Journal of International Economics · 2024-03-04 · 1 citations

By preemptive austerity , we mean a policy that increases taxes to deter potential rollover crises. The policy is so successful that the usual danger signal of a rollover crisis, a high yield on new bonds sold, does not show up, because the policy eliminates the danger. Mechanically, high taxes make the safe zone in the model – the set of sovereign debt levels for which the government prefers to repay its debt rather than default – larger. By announcing a high tax rate at the beginning of the period, the government ensures that tax revenue will be high enough to service sovereign debt becoming due, which deters panics by international lenders but is ex-post suboptimal. That is why, as it engages in preemptive austerity, the government continues to reduce the level of debt to a point where, at least asymptotically, high taxes are no longer necessary.

Preemptive Austerity with Rollover Risk

2023-10-30 · 3 citations

By preemptive austerity, we mean a policy that increases taxes to deter potential rollover crises. The policy is so successful that the usual danger signal of a rollover crisis, a high yield on new bonds sold, does not show up because the policy eliminates the danger. Mechanically, high taxes make the safe zone in the model - the set of sovereign debt levels for which the government prefers to repay its debt rather than default - larger. By announcing a high tax rate at the beginning of the period, the government ensures that tax revenue will be high enough to service sovereign debt becoming due, which deters panics by international lenders but is ex-post suboptimal. That is why, as it engages in preemptive austerity, the government continues to reduce the level of debt to a point where, asymptotically, high taxes are no longer necessary.

A quantitative evaluation of universal basic income

Journal of Public Economics · 2023 · 31 citations

• Economics
• Public economics
• Labour economics

Workers’ Income Risk and the Evolution of Income Inequality in China

SSRN Electronic Journal · 2023-01-01 · 1 citations

The Heterogeneity of Income Risk in China

SSRN Electronic Journal · 2023-01-01

Preemptive Austerity with Rollover Risk

National Bureau of Economic Research · 2023-11-01

By preemptive austerity, we mean a policy that increases taxes to deter potential rollover crises.The policy is so successful that the usual danger signal of a rollover crisis, a high yield on new bonds sold, does not show up because the policy eliminates the danger.Mechanically, high taxes make the safe zone in the model -the set of sovereign debt levels for which the government prefers to repay its debt rather than default -larger.By announcing a high tax rate at the beginning of the period, the government ensures that tax revenue will be high enough to service sovereign debt becoming due, which deters panics by international lenders but is ex-post suboptimal.That is why, as it engages in preemptive austerity, the government continues to reduce the level of debt to a point where, asymptotically, high taxes are no longer necessary.

Workers’ income risk and the evolution of income inequality in China

Economics Letters · 2023-12-01 · 2 citations