Liutang Gong

Peking University

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H-Index

i-10 index

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Co-Authors

Heng‐Fu Zou

Wuhan University

Xiaoyong Cui

University of Chinese Academy of Sciences

Chan Wang

Central University of Finance and Economics

Qianling Zhou

Beijing Technology and Business University

Jin Zhang

Kunming University of Science and Technology

Yulei Luo

China Southern Power Grid (China)

William T. Smith

University of Memphis

Jie Xiao

Shenzhen University

Hongfu Ni

Chinese Academy of Social Sciences

Hongyi Li

Guangzhou Medical University

Cooperative Institutions

Peking University

Chinese Academy of Sciences

Zhengzhou University

University of Chinese Academy of Sciences

Beijing Institute of Technology

Central University of Finance and Economics

Kunming University of Science and Technology

Sichuan University

Chinese University of Hong Kong

Beijing Technology and Business University

Author Statistics

Papers

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i-10 index

Research Field

THE Z-TRANSFORM AND COMPARATIVE DYNAMICS IN DISCRETE-TIME MODELS

Macroeconomic Dynamics (2011)

Liutang Gong Wei Wang

This paper develops a general technique for the computation of comparative dynamics in perfect-foresight discrete-time models. The method developed here is both applicable and general; it can be used to analyze the effects of the perturbation of parameters on endogenous variables and the welfare of an economic system derived from more general multisector models. It is neither restricted to the system's dimensions nor restricted by the assumption of distinct eigenvalues in the system.

Futures studies

10.1017/s1365100511000071

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Citations (1)

Social status, inflation uncertainty and growth in a cash-in-advance economy

International Economic Journal (2008)

Liutang Gong

In a stochastic monetary model with the cash-in-advance constraint and the social-status concern, this paper studies the effects of inflation and inflation variability on growth. It is shown that the Tobin effect still holds under deterministic monetary growth. The effect of inflation on growth, however, is ambiguous under stochastic monetary growth: the effect is positive when an agent's desire for social status is relatively strong and negative when this desire is relatively weak. It is also found that inflation variability always stimulates growth.

10.1080/10168730802294545

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Incentive or constraint? Comprehensive impacts of green credit policy on the industrial enterprises' energy intensity

Research Square (Research Square) (2023)

Jinkai Li Can Zhang Jin Zhang Zhifu Mi Zhuang Liu

Abstract Discussing the function of green credit policy (GCP), which has dual attributes of being both a “environmental regulation” and a “financial instrument”; is crucial for the process of industrial green transformation. However, there is limited theoretical and empirical evidence on the impact of GCP on green transformation of industry. This research fills this gap by exploring the comprehensive impacts and mechanisms of GCP on the energy intensity (EI) of industrial enterprises in China. Theoretically, the environmental and financial impacts of GCP are introduced into a unified analytical framework on the basis of the heterogeneous enterprise model. Empirically, diverse empirical methods, such as difference-in-differences (DID), difference-in-differences-in-differences (DDD), and mediating effect models, are adopted to examine whether GCP can promote green innovation or accelerate financial constraint. The overall result shows that: (1) GCP has significantly decreased the EI of industrial enterprises. The impact of incentives was far greater than that of constraints. (2) In the incentive effect, energy substitution and innovation offsets exerted a primary influence on reducing the EI of industrial enterprises. (3) The constraint effect was primarily caused by rising financing and pollution abatement costs. This study offers a playbook for policymakers in China and other emerging economies to design effective policies for promoting industrial green transformation and sustainable production.

Empirical Research

10.21203/rs.3.rs-2713976/v1

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Fiscal Federalism, Public Capital Formation, and Endogenous Growth

Annals of economics and finance (2003)

Liutang Gong Heng‐Fu Zou

This paper extends the Barro (1990) growth model with one aggregate government spending and one flat income tax to include federal and local public consumption, federal and local public capital formation, federal and local taxes, and federal transfers to locality. It derives the rate of endogenous growth and examines how the growth rate and welfare respond to changes in federal taxes, local taxes, and federal transfers.

Endogenous growth theory

fiscal federalism

Public capital

Consumption

Tax rate

Capital (architecture)

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Citations (10)

International trade in intermediate inputs and the welfare gains from monetary policy cooperation

RePEc: Research Papers in Economics (2020)

Liutang Gong Jianjian Liu Chan Wang Liyuan Wu Heng‐Fu Zou

This paper introduces international trade in intermediate inputs into Clarida et al.(2002) to examine the welfare gains from monetary policy cooperation when the world is hit by cost-push shocks. We find that Clarida et al.(2002)'s prediction is right. Specifically, the introduction of the international trade in intermediate inputs opens a new channel through which the terms of trade at the stage of intermediate-goods production produce the spillover effect. In Clarida et al. (2002), the risk sharing effect and the terms of trade effect cancel out and the welfare gains from monetary policy cooperation disappear when the utility function of consumption is logarithmic. By contrast, in our model, the new channel still works. By internalizing the spillover effect produced through the new channel, the cooperative monetary policymaker achieves the welfare gains which are substantially larger than those found in the literature. In addition, we find that the welfare gains increase with the degree of intermediate-goods trade openness.

Spillover effect

Openness to experience

Gains from trade

Consumption

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Political Budget Cycles of Prefectures in China

SSRN Electronic Journal (2016)

Liutang Gong Brian Knight Jie Xiao Qinghua Zhang

We investigate political budget cycles in China. To do so, we exploit cross-province variation in the timing of the Congress of the Communist Party, the most significant event in terms of promoting and re-appointing prefecture leaders. We find strong evidence of a cycle, with an acceleration in government spending during the period leading up to the Congress and a corresponding deceleration following the Congress. This pattern is particularly strong for infrastructure, arguably the key driver of economic growth. We also explore China’s multi-layer government hierarchy and investigate heterogeneity across prefectures. We find that these cycles are particularly pronounced when promotion opportunities are most salient for prefecture leaders.

10.2139/ssrn.2756857

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Foreign Aid Reduces Labor Supply and Capital Accumulation

Liutang Gong Heng‐Fu Zou

In an optimal growth model with foreign aid, foreign borrowing, and endogenous leisure-and-consumption choices, it is shown that a permanent rise in foreign aid reduces long-run capital accumulation and labor supply, increases long-run consumption, and has no effect on long-run foreign borrowing.

Consumption

Foreign capital

Capital (architecture)

Endogenous growth theory

Capital Accumulation

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Direct preferences for wealth, the risk premium puzzle, growth, and policy effectiveness

Liutang Gong Heng‐Fu Zou

In this paper, we consider social status, the spirit of capitalism, fiscal policies, and asset pricing in a stochastic model of growth. With specific assumptions on the production technology, preferences, and stochastic shocks, we derive the explicit solutions to the growth rates of consumption and savings and equilibrium returns on all assets. We further demonstrate how fiscal policies, the spirit of capitalism, and stochastic shocks affect growth, asset pricing, and welfare.

Consumption

Affect

Stochastic investment model

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Employment Gap, Wage Gap and Cross-Sectoral Human Capital Migration

SSRN Electronic Journal (2022)

shang ao Li Liutang Gong Shan L. Pan

In this study, an economic growth model including both commodity and service sectors is constructed and the effect of cross-sectoral human capital migration on sectoral economic disparities was analyzed. The model illustrates that: (i) human capital accumulation promotes steady growth in both the sectoral and the aggregate economy; (ii) the immigration of human capital to service sector promotes its economic growth, whereas the emigration of human capital from commodity sector hinders its economic growth; and (iii) the accumulation and the cross-sectoral migration of human capital lead to expanded sectoral economic disparities.

10.2139/ssrn.4230116

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Optimal monetary policy with international trade in intermediate inputs

RePEc: Research Papers in Economics (2016)

Liutang Gong Chan Wang Heng‐Fu Zou

This paper examines optimal monetary policy in a two-country New Keynesian model with international trade in intermediate inputs. We derive the loss function of a cooperative monetary policymaker and i¬ nd that the optimal monetary policy must target intermediategoods price ini¬‚ation rates, i¬ nal-goods price ini¬‚ation rates, i¬ nalgoods output gaps, and relative-price gaps. We use the welfare loss under the optimal monetary policy as a benchmark to evaluate the welfare implications of three Taylor-type monetary policy rules. A main i¬ nding is that the degree of price stickiness at the stage of intermediate-goods production is a key factor to determine which policy rule should be followed. Specii¬ cally, when the degree of price stickiness at the stage of intermediate-goods production is high, the policymaker should follow intermediate-goods PPI-based Taylor rule, whereas CPI-based Taylor rule should be followed when the degree of price stickiness at the stage of intermediate-goods production is intermediate or low.

New Keynesian economics

Taylor rule

Output gap

Price setting

Benchmark (surveying)

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