Educational subsidies are frequently justified as a method of altering the income distribution. It is thus natural to compare education to other tax-transfer schemes designed to achieve distributional objectives. While equity-efficiency trade-offs are frequently discussed, they are rarely...

This paper studies two striking stylized facts about China's reform: that the output growth in the early stage of the reform is mainly due to productivity growth, and that the income inequality is increasing over time. This paper is a preliminary attempt in understanding these two facts in an...