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【3月16日】Political institutions, economic instit

题目:Political institutions, economic institutions, and income inequality in urban China
报告人:Hai Zhong, Central University of Finance and Economics
时间:2:00-3:30pm, March 16 (Tuesday)
地点:光华新楼217教室
论文:0910-13

Abstract:
      Income inequality is often increased significantly in the process of economic transition. The distribution of losses and gains generated in this process among different social groups has far-reaching implications. Further political and economic reforms might be constrained when the ruling elites responsible for institutional changes have vested interests. In this paper, we find that political rent has emerged as a more and more significant source of income inequality in China. The unconditional decomposition results show that 36.5% of the increase of income inequality from 1997 to 2006 can be attributed to political rent. Even after we control for various household characteristics, political rent still contributes 19.3% to the increase. It seems that the ruling elites have taken great advantages from the restructuring of the SOEs and government reforms occurred in this period. Further economic reforms may need political institutional reforms that create effective constraints on power-holders, and ensure relatively few rents to be captured by them.


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