Financial crises have been attributed to rising income inequality via its induced high household leverage as observed in the USA and similar economies. Alternatively it has been suggested this is not a general relationship since it was found that inequality had no bearing on crises in 14...

Infrastructure provision in backward areas has been proposed by many studies as a cure for widening income gaps in developing countries like China. However, little has been said regarding infrastructure’s role as an unpaid production factor or the issue of optimal resource allocation. This...

This paper examines how an open economy determines its financial openness and deals with volatile capital flows when deciding to utilize them for output growth. We find that higher economic instability is an inevitable price paid for faster growth if a country permits wider openness without...

Renewed attention to inequality and saving has arisen owing to their pronounced implications for global imbalances and financial crises. We show that the relationship between saving and inequality is negative if savers' funds are borrowed by spending households for consumption as in the USA, but...

type="main" xml:id="twec12188-abs-0001" <title type="main">Abstract</title> <p>Global imbalances are attributable to savings deficiency in some economies and savings glut in others. The recent global crisis has triggered widespread social conflict over income inequality. The inequality-saving link has again become a pressing...</p>

Since 1994, China's central government has implemented a sequence of fiscal recentralization measures to increase its equalization capacity and reduce regional income disparities. However, the effect of intergovernmental transfers on equalization has been called into question by anecdotal...

This paper investigates the sources of economic fluctuations in the four Asian newly industrialized economies (NIEs), namely Hong Kong, Republic of Korea, Singapore and Taiwan. As small open economies, their macro-economic development is highly dependent on technology as well as markets of large...

This paper examines the impact on the money-output correlation of a univariate specification that allows time series to be characterized as stationary around a broken trend function. Though pretesting suggests that U.S. real output (industrial production) can be described as broken-trend...