TAILIEUCHUNG - Research " Essays on Income Inequality, Exchange Rate, and Policy Coordination"

The topic of policy formulation among interdependent economies has received much attention in the literature. China and Hong Kong are economically closely linked. Policy initiatives in one economy may influence the evolution of economics variables in the other. In the first essay a two-country model is used to illustrate the interdependence of these two economies. Not surprisingly, we found that the policy effects are asymmetric, due to differences in size. China’s economic policies have a big effect on Hong Kong, but the reverse is not true. However, China and Hong Kong’s economies are intertwined | Essays on Income Inequality Exchange Rate and Policy Coordination by Xiaojun Yang . . . Dissertation Presented to the Faculty of the Graduate School of The University of Texas at Austin in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy The University of Texas at Austin May 2003 UMI Number 3116243 UMI Microform 3116243 Copyright 2004 by ProQuest Information and Learning Company. All rights reserved. This microform edition is protected against unauthorized copying under Title 17 United States Code. ProQuest Information and Learning Company 300 North Zeeb Road PO Box 1346 Ann Arbor MI 48106-1346 Acknowledgements I am deeply indebted to my supervisor Professor David A. Kendrick for his kind guidance advice and encouragement. Under his consistent conscientious and patient supervision I have gained insight about macroeconomics and computational economics importantly how to approach academic research. I will continue to value his friendship. I also owe thanks to the other member of the dissertation committee Dr. Li Gan Dr. Vince Geraci Dr. William Glade Dr. Hong Yan for their valuable discussions and suggestions and for their generosity and kindness. Also I would like to express my appreciation to Seung-Rae Kim and Marco Tucci for their intellectual and technical advice. Finally I express my special thanks to my parents for their lasting support and love. .

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