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The Kuznets Curve on Income Distribution Does Not Hold in China: A Critical Assessment

Author

Listed:
  • Qichun He

    (Central University of Finance and Economics)

  • Heng-fu Zou

    (Central University of Finance and Economics)

Abstract

We find robust evidence that within each consecutive dynasty of ancient China, inequality demonstrates a "U" shape (or rather a "spoon" shape, to be more precise). As inequality hit an upper limit, war occurred, leading to a new dynasty replacing the old one. The cycle would then repeat itself. A simple explanation for this has been offered, and policy implications have also been presented.

Suggested Citation

  • Qichun He & Heng-fu Zou, 2018. "The Kuznets Curve on Income Distribution Does Not Hold in China: A Critical Assessment," CEMA Working Papers 607, China Economics and Management Academy, Central University of Finance and Economics.
    • Handle: RePEc:cuf:wpaper:607
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    References listed on IDEAS

    as
    1. Qichun He & Meng Sun, 2016. "Central Planning Legacies: The Lingering Effects Of The Great Leap Forward In China," Bulletin of Economic Research, Wiley Blackwell, vol. 68(2), pages 182-203, April.
    2. Timothy Besley & Torsten Persson, 2009. "The Origins of State Capacity: Property Rights, Taxation, and Politics," American Economic Review, American Economic Association, vol. 99(4), pages 1218-1244, September.
    3. Timothy Besley & Torsten Persson, 2010. "State Capacity, Conflict, and Development," Econometrica, Econometric Society, vol. 78(1), pages 1-34, January.
    4. Daron Acemoglu & Jacob Moscona & James A. Robinson, 2016. "State Capacity and American Technology: Evidence from the 19th Century," NBER Working Papers 21932, National Bureau of Economic Research, Inc.
    5. Brittan, Samuel, 1975. "The Economic Contradictions of Democracy," British Journal of Political Science, Cambridge University Press, vol. 5(2), pages 129-159, April.
    6. Daron Acemoglu & Camilo García-Jimeno & James A. Robinson, 2015. "State Capacity and Economic Development: A Network Approach," American Economic Review, American Economic Association, vol. 105(8), pages 2364-2409, August.
    7. Haiyan Ding & Hui He, 2018. "A Tale of Transition: An Empirical Analysis of Economic Inequality in Urban China, 1986-2009," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 29, pages 106-137, July.
    8. Daron Acemoglu & Jacob Moscona & James A. Robinson, 2016. "State Capacity and American Technology: Evidence from the Nineteenth Century," American Economic Review, American Economic Association, vol. 106(5), pages 61-67, May.
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    More about this item

    Keywords

    Kuznets Curve; Income inequality; U shape; Ancient China;
    All these keywords.

    JEL classification:

    • N95 - Economic History - - Regional and Urban History - - - Asia including Middle East
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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