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A model of industrialization and rural income distribution
China Agricultural Economic Review ( IF 5.1 ) Pub Date : 2019-09-02 , DOI: 10.1108/caer-02-2019-0030
Yong Wang

The purpose of this paper is to explore how the processes of (de)industrialization and rural income distribution interact with each other and their implications for economic growth and welfare.,This paper takes a dynamic general-equilibrium and theoretical approach.,The author develops a dynamic general-equilibrium model to analytically characterize how (de) industrialization interacts with rural income distribution, and also explores the implications for aggregate GDP growth, the evolution of rural income distribution as well as welfare. Redistributive policies are shown to sometimes enhance GDP and welfare by boosting the production of the goods with high desirability (or productivity) but constrained by depressed demand due to income inequality, and internalizing the dynamic impact of private production and consumption decisions on future public productivities.,The research suggests that rural income distribution and (de)industrialization are intrinsically related, so policies or institutional distortions on one process would, in general, affect the other. Redistributive policies are shown to sometimes enhance GDP and welfare by enhancing industrialization.,The paper contributes to the literature of industrialization and structural change at large in several aspects. First, a key novel feature of our model is that the Engle’s law is captured by a quasi-linear utility function, which differs from the standard non-homothetic functions in this literature. Second, our paper contributes to the literature of structural change by showing how (de)industrialization works when sectorial productivity changes are endogenous. The paper also sheds light on the determination of rural income distribution and its evolution in the process of structural change and rural-urban migration.

中文翻译:

工业化与农村收入分配的模型

本文旨在探讨(去)工业化过程与农村收入分配过程如何相互影响,以及它们对经济增长和福利的影响。本文采用动态的一般均衡和理论方法。一个动态的一般均衡模型,用于分析(工业化)工业化与农村收入分配之间的相互作用的特征,还探讨了其对GDP总增长,农村收入分配的演变以及福利的影响。事实表明,重新分配政策有时会通过提高具有高期望值(或生产率)的商品的产量来提高GDP和福利,但由于收入不平等而受到​​需求下降的限制,研究表明,农村生产和消费决策对未来公共生产力的动态影响是内在的。研究表明,农村收入分配和(去)工业化是内在联系的,因此,一个过程的政策或制度扭曲通常会影响另一个过程。重新分配政策有时会通过促进工业化来提高GDP和福利。本文从多个方面为工业化和结构变化的文献做出了贡献。首先,我们模型的一个关键的新颖特征是,恩格尔定律是由准线性效用函数捕获的,这与文献中的标准非齐次函数不同。第二,我们的论文通过显示当部门生产率变化是内生的时(去)工业化如何工作,为结构变化的文献做出了贡献。本文还阐明了农村收入分配的确定及其在结构变化和城乡迁移过程中的演变。
更新日期:2019-09-02
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