Risk-Taking, Market Selection and Income Mobility: Theory and Applications
2014/08/05
研討會日期 : 2014-08-05
時間 : 14:30
主講人 : Professor Guang-Zhen Sun
主持人 : Professor Wei-Torng Juang
地點 : Conference Room B110
演講者簡介 : Professor Sun received his Ph.D. in Economics from Monash University, Australia, at 1999. He is currently an Associate Professor in the University of Macau. His research fields are Microeconomics, Political Economy, Development Economics, and History of Ideas in Economics.
演講摘要 : We develop a Markov mobility model to study how market competition, as the market deepens to the extent that entrepreneurial undertaking become viable, effectively screens the individuals/households’ entrepreneurial abilities by rewarding those with a high ability and punishing those with a lower one, and, as a consequence, how the screening leads to intergenerational income mobility in favor of the former even when and if the latter is privileged to initially possess more wealth than the former. Our theory has implications for understanding the income and wealth mobility in the economies, such as the post-reform China and the post-apartheid South Africa, wherein the expanding market order has been rapidly reshaping the economic life that used to be deeply embedded in the social fabric and long entrenched institutions, which are often against the logic of the market. We confront our theoretical predictions with a dataset regarding income mobility of about 1500 households in rural China during the period 1989-2009 and empirical evidence from other developing economies as well.
