Essays on Income Distribution and Housing Prices

This thesis focuses on some prominent features in both U.S and Chinese economy. For instance, average housing price per square meter in China has been almost tripled from 1998 to 2010. What drives housing price growth? How much housing price growth can be explained by some fundamental factors? Those questions are interesting since it allows us to explore whether there is a bubble component in the housing price. If bubble exists, then how large it is? Another clear observation is that income inequality has risen sharply in U.S over the past several decades. What are those factors that might contribute to this trend? How financial friction may affect income distribution and people\u27s education choice? Those are important issues that deserve further study