Narrow Results

This paper applies stochastic dominance techniques for income distribution analysis and develops tests of richness and poorness to achieve more accurate characterizations of relative welfare in populations than was previously possible. Results from our empirical application, using Hong Kong data, are consistent with predictions of the life-cycle theory of income and savings. Among other things, we find high concentrations of poor individuals among the younger cohorts, and at the same time, there are high concentrations of rich individuals amongst the oldest cohorts. Our results help to explain Hong Kong’s persistently high levels of income inequality in the population.

In mid-1999, the Walt Disney Company and the Hong Kong Government were involved in intense discussions about the possibility of building the Hong Kong Disneyland theme park on Lantau Island. This case presented detailed information about the proposed theme park and the associated decision making process with a particular emphasis on sustainable development. It also lays out the characteristics of the Hong Kong Government and Hong Kong people that might have played a role in decision making.

The case includes A and B parts concerning corporate and government decision making. It firstly summarizes the negotiation process between Disney and the Hong Kong Government, and considered the environmental impact on Hong Kong. The difficulties faced by governments in making decisions about this highly visible large-scale project are described. It then explains the rationale of the government decision, which illustrates how governmental structure and culture affect the decision making process. In the end, it showed improvements in Hong Kong Disneyland with respect to sustainable management and development.