Evolutionary Game Analysis on Behavioral Strategies of Multiple Stakeholders in Inclusive Green Growth

Inclusive green growth has been set as an important initiative to solve the severe problems of environmental degradation and severe income inequality. It requires the joint participation of local government, enterprise and public. However, these stakeholders are not enthusiasm enough as there are divergences among their interest goals. Hence, this paper analyses how to balance the stakeholders’ interest goals based on the central supervision and local regulation in environmental protection and income inequity alleviation. Therefore, an evolutionary game model between central and local government, and an evolutionary game model among local government and enterprise and public are conducted. The conclusions are drawn as follows: (1) The local government should play a leading role in promoting IGG, and the decrease of the economy proportion in the assessment on local government will significantly promote its enthusiasm; (2) When the penalty on enterprise increase, both enterprise and the public will choose positive participate behavior faster; (3) The high public monitoring cost will hinder both enterprise and public’s participation. Finally, some recommendations are put forward.

Predatory Value Extraction

This book explains how an ideology of corporate resource allocation known as “maximizing shareholder value” (MSV), that emerged in the 1980s and came to dominate strategic thinking in business schools and corporate boardrooms, undermined the social foundations of sustainable prosperity, resulting in employment instability, income inequity, and slow productivity growth. In explaining what happened to sustainable prosperity in the United States, it focuses on the growing imbalance between value creation and value extraction that reached to the extent of “predatory value extraction.” Based on “The Theory of Innovative Enterprise,” the book analyzes the value extracting mechanism by “value-extracting insiders,” i.e. corporate executives, “value-extracting enablers,” i.e. institutional investors, and “value-extracting outsiders,” i.e. hedge-fund activists. It concludes with policy suggestions to rebuild the U.S. corporate-governance regime for combating predatory value extraction and restoring sustainable prosperity.

Technological development and income inequality: a role of financial market

In this paper we study the effects of financial markets on an increase in income inequity. The notion, which is employed as a working hypothesis that the market equilibrium around the fair price and unbiased changes in prices has a neutral effect on inequity while the systematic underreaction accompanied by time trends contributes to its growth, has been considered. In order to check this hypothesis we have studied the long-term cycles in dynamics of the US stock index and income inequity and shown that the stock market growth observed in 1980-2017 is correlated to an increase in income inequity. The presence of causality in this relationship has been found through the evidence of systematic underreaction given by the share prices of fast-growing companies to the information about the diffusion of technological innovations. The research results prove that the free financial markets with technological development in progress contribute to instability, as they while enhancing income inequality increase the unemployment growth risks and require additional efforts from the state to redistribute income.

Income Inequality in the 1990s: Re-forging a Lost Relationship

Using data from the March Current Population Survey, summary inequality measures as well as kernel density estimations, we find gains from economic growth over the 1990s business cycle (1989-2000) were more equitably distributed than over the1980s business cycle (1979-1989). The entire distribution of household size-adjusted income moved upwards in the 1990s with profound improvements for African Americans, single mothers and those living in households receiving welfare. Most gains occurred over the growth period 1993-2000. Improvements in average income and income inequity over the latter period are reminiscent of gains seen in the first three decades after World War II.