Tuesday, May 27, 2014
The Science of Inequality
The Science Magazine has dedicated a special issue on the science of inequality, which features articles from the following authors: H. Pringle, A. Deaton, E. Pennisi, M. Ravallion, E. Marshall, T. Piketty and E. Saez, and others.
The Science Magazine has dedicated a special issue on the science of inequality, which features articles from the following authors: H. Pringle, A. Deaton, E. Pennisi, M. Ravallion, E. Marshall, T. Piketty and E. Saez, and others.
Posted by at 9:17 AM
Labels: Inclusive Growth
The IMF’s Andy Berg reviews Piketty
“This important and fascinating book surely ranks among the most influential economic analysis of recent decades. Much of the debate over inequality in recent years is the result of the work of Thomas Piketty and his fellow researchers.
Earlier research on inequality focused on data from household surveys described in terms of the “Gini” index, which measures the income distribution in a country. But the Gini misses much of the action at the top of the income distribution, partly because the very rich tend not to report all their income. And at best, these surveys measure income, not wealth.
Piketty has painstakingly drawn on new data sources to show that income inequality has risen sharply in recent decades to extremely high levels in the United States and, to a lesser extent, in a handful of other English-speaking countries. The rise has been driven mostly by wage inequality between the top 1 percent of the wealthiest in society, and everyone else. (I wish there had been room in this long book to address the critics who attribute these results to distortions in the data.)”
“This important and fascinating book surely ranks among the most influential economic analysis of recent decades. Much of the debate over inequality in recent years is the result of the work of Thomas Piketty and his fellow researchers.
Earlier research on inequality focused on data from household surveys described in terms of the “Gini” index, which measures the income distribution in a country. But the Gini misses much of the action at the top of the income distribution, Read the full article…
Posted by at 9:07 AM
Labels: Inclusive Growth
Saturday, May 24, 2014
House Prices in Hong Kong
“Property prices have increased some 300 percent from their trough in 2003. While prices have leveled off more recently, estimates from [IMF] staff models suggest they could be higher than suggested by fundamentals. (…) a disorderly correction, resulting from, for example, global market volatility or domestic shock, remains a key risk as an abrupt downturn in prices could trigger an adverse feedback loop between economic activity, bank lending, household balance sheets, and the property market.” says the new IMF’s economic report on Hong Kong.
“Property prices have increased some 300 percent from their trough in 2003. While prices have leveled off more recently, estimates from [IMF] staff models suggest they could be higher than suggested by fundamentals. (…) a disorderly correction, resulting from, for example, global market volatility or domestic shock, remains a key risk as an abrupt downturn in prices could trigger an adverse feedback loop between economic activity, bank lending, household balance sheets, and the property market.” says the new IMF’s economic report on Hong Kong.
Posted by at 1:18 PM
Labels: Global Housing Watch
Friday, May 16, 2014
Minimum wages and firm employment: Evidence from China
Minimum wages are set to increase in China under the country’s latest five-year plan. This vox column documents that past increases led to lower employment. However, the impact is heterogeneous. Firms with high average wages or large profit margins actually increase employment, while those with low average wages or small profit margins downsize.
Minimum wages are set to increase in China under the country’s latest five-year plan. This vox column documents that past increases led to lower employment. However, the impact is heterogeneous. Firms with high average wages or large profit margins actually increase employment, while those with low average wages or small profit margins downsize.
Posted by at 11:22 AM
Labels: Inclusive Growth
Friday, May 9, 2014
House Prices in Luxembourg
“Without policy action, underlying forces for housing price appreciation will likely persist (…) Prices do not appear overvalued at this time, though they have recently picked up (…) Banks’ increased exposure to mortgages bears vigilance, and buffers should be maintained. The tightening in the risk weights for LTVs above a certain level for banks, and the capital surcharge for domestically-oriented banks, are appropriate. If these measures are found to be insufficient after some period of observation, further steps may be needed (…) Government policies should become more neutral in relation to home ownership vs. renting. Current policies provide incentives for ownership, spurring demand pressures further”–these are the main points from the overall assessment of a new IMF study on Luxembourg’s housing market.
“Without policy action, underlying forces for housing price appreciation will likely persist (…) Prices do not appear overvalued at this time, though they have recently picked up (…) Banks’ increased exposure to mortgages bears vigilance, and buffers should be maintained. The tightening in the risk weights for LTVs above a certain level for banks, and the capital surcharge for domestically-oriented banks, are appropriate. If these measures are found to be insufficient after some period of observation,
Posted by at 6:21 PM
Labels: Global Housing Watch
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