A Note on the Nature and Determination of Income

This note comments on the doubtful application of an economic concept of personal income to the non-personal business enterprise situation.     

The Meta Taylor Rule

We characterize U.S. monetary policy within a generalized Taylor rule framework that accommodates uncertainties about the duration of policy regimes and the specification of the rule, in addition to the standard parameter and stochastic uncertainties inherent in traditional Taylor rule analysis. Our approach involves estimation and inference based on Taylor rules obtained through standard linear regression methods, but combined using Bayesian model averaging techniques. Employing data that were available in real time, the estimated version of the “meta” Taylor rule provides a flexible but compelling characterization of monetary policy in the United States over the last 40 years.     

韩国江原道新农渔村建设运动的开展过程和特征

新农渔村运动是韩国江原道1999年开始实行的由村民主导自下而上的农渔村开发方式。这次运动以三大目标和三大理念为基础,三大目标指的是实事求是、自力更生、自由竞争;三大理念为精神、收入、环境。每年在各市郡所推荐的村庄中选出30个优秀村庄,对各村庄给予5亿韩币的自行创新力量项目费作为支援。从1999年开始到2010年获选的优秀村庄共有264个,项目费共计支出1320亿韩币。收入提高项目费占75%,环境改善占10%。收入提高项目内容有共用民宿、农村体验村庄的建设、共用销售卖场、低温仓库等农村观光以及农产品流通基础设施建设。通过新农村建设运动,各村庄根据所具有的特征设定发展模式,村民们带着我们也能行的自信感,通过意识上的转变、新技术的引入和组织化的活跃进行,最终实现收入水平的提高。     

Financial Integration in Emerging Asia: Challenges and Prospects

Using both quantity‐ and price‐based measures of financial integration, the paper shows an increasing degree of financial openness and integration in emerging Asia. Assessing the impact of a regional shock relative to a global shock on local equity and bond markets, the findings suggest that the region's equity markets are integrated more globally than regionally, although the degrees of both regional and global integration have increased significantly since the 1997/1998 Asian financial crisis. However, emerging Asia's local currency bond markets remain generally segmented, being neither regionally nor globally integrated. There are potential benefits from increased regional integration of financial markets. Financial integration at the regional level allows for the region's economies to benefit from allocation efficiency and risk diversification. Policymakers in the region must strike the right balance between maximizing the net benefits from regional and global financial openness, and minimizing the potential costs of financial contagion and crisis.     

Financial reform and the efficiency of credit allocation in Korea

This study analyzes some of the structural problems associated with the Korean financial sector, and investigates the efficiency of credit allocation by the financial system over the period from 1970 to 1996. Using data at the level of 32 industrial branches, we find no evidence that credit flows were directed sectors that were more profitable, either before or after financial reforms were initiated in the 1980s. We also find that the financial support did not contribute to improve the performance of the favored industries over time.     

Investor Sentiment and the Closed-End Fund Puzzle

This paper examines the proposition that fluctuations in discounts of closed-end funds are driven by changes in individual investor sentiment. The theory implies that discounts on various funds move together, that new funds get started when seasoned funds sell at a premium or a small discount, and that discounts are correlated with prices of other securities affected by the same investor sentiment. The evidence supports these predictions. In particular, we find that both closed-end funds and small stocks tend to be held by individual investors, and that the discounts on closed-end funds narrow when small stocks do well.     

HOW THE GLOBALIZATION OF R&D COMPETITION AFFECTS TRADE AND GROWTH

The implications of international R&D competition on trade and growth are investigated. The model is one in which a separate R&D sector competes with the manufacturing sector to secure human capital, and technology is licensed to manufacturers by the winner of a pre-emptive R&D competition. The results show that globalization of R&D competition leads to trade between countries (even identical countries), because the result of competition leads to a reallocation of human capital between sectors. The winning country exports technology and traditional goods, while the loser exports manufactured goods. Globalization with indiscriminate technology licensing increases the world's economic growth rate.