Extending some existing literature, this paper formalizes the idea that intergenerational transfers occur because people care about the "characteristics" (i.e quantity and quality) of their offspring, rather than their children's welfare per se or consumption. The model analyzes this transfer...

This paper examines the interaction between decisions on divorce and fertility. The analysis generates two major implications. Firstly, it complements the existing literature on endogenous fertility to explain why population growth and economic growth can be negatively correlated after an...

Since the Chinese government launched the economic reform and “open door” policies in late 1978, investment between Hong Kong and Mainland China has increased remarkably. In fact, Hong Kong has been the Mainland’s dominant supplier of FDI. Income distribution in Hong Kong was affected when...