Behind rising inequality and falling growth

This paper investigates why the upsurge of top income shares has coincided with economic slowdowns in the US since the late 1970s. I argue that a fast-growing unearned income from ‘wealth residual’ – the unexplained increase in wealth that is not accompanied by any increase in real output – lies behind them. To support this hypothesis, I measure wealth residual from the national accounts and associated statistics, and then perform a set of panel regressions using a comprehensive panel dataset of the US at the state level. The estimation results demonstrate that the rapid growth of wealth residual during the last four decades has contributed to a co-evolution of fast-growing inequality and falling growth.     

不同监督情境下政府创新支持对企业研发投入的影响*——基于农业上市公司的实证研究

近年来，“三农”问题受到极大关注。为了应对外部资源、环境、科学技术等多重压力对农业升级与发展的影响，政府出台了诸多政策支持农业企业的技术研发与创新。本文从政府干预视角分析政府补助和税费返还两种形式的政府创新支持政策对农业企业研发投入的影响，重点分析机构投资者与大股东参与公司内部治理以及社会审计事务机构参与公司外部治理这两者所发挥的不同监督作用。研究发现：第一，不同形式的政府创新支持（政府补助和税费返还）对农业企业研发投入的影响并不一致。政府补助产生替代效应，税费返还则产生互补效应。第二，持股监督（机构投资者和大股东的持股比例上升）能增强政府补助对农业企业研发投入的替代效应，也能增强税费返还对农业企业研发投入的互补效应。第三，审计监督（社会审计事务机构的审计意见）会减弱政府补助支持对农业企业研发投入的替代效应，也会减弱税费返还对农业企业研发投入的互补效应。本文的研究发现为政府制定适宜的创新支持政策，以及合理发挥持股监督与审计监督的内外部治理作用，提供一定的决策依据和理论支持。     

The Benefit of Frequent Corporate Philanthropy

Applying behavioural economic theory, we argue that the frequency of philanthropic activity is important in determining corporate philanthropy's economic outcome. Using Chinese data from 2003 to 2016, we find that firms with more frequent philanthropic activities obtain more government subsidies than firms that only engage in one-off charitable donations. Firms with better corporate governance, such as higher management ownership and more independent directors, are more likely to adopt a strategy of frequent donation. Furthermore, firms are more likely to be frequent donors when management or local government officers have a long tenure. Our findings provide insight into the giving process and suggest that firms can maximize the benefit of corporate philanthropy if they strategically consider the donation frequency and donation amount simultaneously.     

On the impacts of carbon tax and technological progress on China

Using a dynamic national computable general equilibrium model, we investigate the impact of carbon tax and energy efficiency improvement on the economy and environment of China. The Chinese social account matrix is presented based upon the latest input–output table (2012 IO table) and other data. The business as usual (BAU) scenario is designed according to several forecasts about China by 2030, followed by six policy scenarios, including different levels of carbon tax and technological progress as well as their combinations. The results show that carbon tax will frustrate the overall economic growth slightly. The CO₂ emission will be 13.81% lower in 2030 compared to BAU case if the carbon tax scheme is carried out at a rate of 200 RMB/ton of CO₂. Technological progress will stimulate the economic growth, enrich the household and government income, increase total investment and make most sectors prosperous with the exception of energy industries.     

An investigation of the corporate identity construct in China: Managerial evidence from the high technology industry

The study develops and extends existing frameworks of corporate identity and investigates what organisations in China perceive as essential components of the corporate identity concept including their dimensions and contents. The study adopted a qualitative approach and the method of research was a case study. Using the soft-laddering approach, and a multidisciplinary categorisation of analyses of corporate literature and websites, a systematic analysis of the corporate identity was carried out. Different from previous studies, the study reveals new dimensions on the basis of the industry practitioners’ views. The context of China has shown to influence a different focus, more significantly around the ‘impression’ that corporate identity can contribute with commercially. It is suggested that new high-tech firms in China may not have enough experience and capacity to engage in a more holistic corporate identity concept provided. The lack of such experience is particularly likely for new firms, which are still in their early stage of development. Implications for management of corporate identity in China are presented along with directions for further research in the marketing communications literature.     

Variations in farm consumption and their relationship to income: an empirical investigation of Illinois farm households

Empirical tests of household consumption have yielded mixed results regarding the validity of the life cycle/permanent income (LCPI) hypothesis. A significant problem with such studies is the difficulty in finding sufficient micro-level data on household expenditures. By using the recent rich quantity of such data in the Farm Business Farm Management (FBFM) data for Illinois farms from 1995 to 2009, the study reported here for farm households should provide more consistent results regarding the LCPI hypothesis. Applying an empirical model based on the LCPI hypothesis, this article identifies the determinants of farm consumption and the relationship to income. This study provides evidence that current income changes are not significant in explaining the consumption changes of farm households, thus supporting the LCPI hypothesis for farm households.     

Corporate rebranding: effects of corporate visual identity changes on employees and consumers

Many organizations invest periodically in a new corporate visual identity (CVI). This study investigates the main effects of CVI changes in four organizations, taking into account three independent variables: stakeholder type (employees vs. consumers), the specific organization, and communication about the CVI change. The results show that CVI changes had positive effects on CVI appreciation and identity/image. However, the effects were different for employees and consumers and differed between specific organizations. Furthermore, adequate communication about the new CVI appeared to be important for people’s appreciation of the CVI. The implications of these findings are discussed.     

Does computer penetration increase farmers’ income? An empirical study from China

The diffusion and adoption of modern information technology provide new chance for China to close urban-rural income gap. This paper uses China's provincial panel data from 2002 to 2013 to investigate the effect of computer penetration on rural residents' income. A public program aiming to connect every village with broadband Internet and other rural facilities provides plausibly exogenous variation in rural residents' availability and adoption of the broadband Internet, which is used to explore the instrument variable for rural computer penetration. The results show that rural computer penetration tends to increase rural residents' income over time, but the average effect remains limited. The dynamic panel threshold effects model, which allows for both the threshold variable and other covariates to be endogenous, is further used to explore the constraints of the income-increase effect of rural computer penetration. It shows that the effect is at least doubled over the average effect estimated from instrument variables method, once the digital divide causes are removed. Our findings have important implications for the government to increase rural residents' income and reduce urban-rural income gap by encouraging rural computer usage and removing the digital divide.     

A continuous income-based grade gap decomposition on university course grades

The earnings premium for education, and higher education in particular, is well documented. This article examines the college achievement gap between students coming from positions of high and low socio-economic status. Other papers have also looked at this issue, often by employing, at least in part, an Oaxaca decomposition. Past papers artificially divided socio-economic status into binary groups of high and low, in order to employ the decomposition. Socio-economic status is innately a continuous variable. Therefore, we implement a continuous version of the Oaxaca decomposition. Higher socio-economic students are both slightly better prepared in terms of observable characteristics and have better returns to their characteristics than lower socio-economic students. Notable differences across results obtained from the binary and continuous decomposition methods are discussed.     

Setting and vetting strategy: Bridging the chasm between CEOs and boards

One of directors’ key fiduciary duties is to set the firm’s direction and then vet the strategy proposed by the CEO. Despite this, McKinsey reports that the majority of directors feel they do not understand their firm’s strategy, and even if they do understand it, they do not feel they have the desired impact on their firm’s strategy. This article argues that this shortfall stems from a failure to cross the chasm between CEOs and directors. We propose a framework to bridge this gap and assist board members to better understand and vet their firm’s strategy.