Abstract:This paper proposes a theory that explains the nature of human capital ownership in the POEs,and argues that the institutional separation of de facto and de jure ownership of human capital from their owners is at the heart of the POE inefficiency.This institutional incompatibility has led to widespread phenomena of individuals using their de facto owned human capital to “capture” the benefits generated by the physical capital nominally owned by the state or the collective.Consequently,partial reforms that only introduce an efficient goods market and/or give managers more decision making power will inevitably exacerbate this problem,since the newly established market now provides a place for individuals,especially managers,to sell the captured profits and assets.The success of the POE reform,therefore,hinges not only on establishing well defined de facto control of physical capital by managers,but also on giving the de jure rights of human capital back to the de facto owners who have never been missing even during the former central planned era.

Abstract:The main purpose of this paper is to provide a meticulous study of the impacts and the conduction mechanism of outside shocks on both real economy and financial economy under different institutional arrangements.Two views are presented in this paper:First,compared with a government intervened economy,a thoroughly liberalized economy has more stable feature in all respects.Second,the optimal path for a government intervened economy transitioning to a liberalized economy is:liberalizing real economy and internal financial markets,applying flexible exchange rate system,and opening capital account.

Abstract:In recent years,Chinese urban and township households saving ratio has amounted to a very high level.In order to explain the puzzle,we first establish a simple overlapping generation model that can obtain the main characteristics of endowment insurance system in China.Then we find that aging of population will generally stimulate people to save more.Because aging of population is the natural result of family plan,it may be one of the most important factors which cause the high savings ratio in Chinese urban and township households and our quantitative results support the above judgement.Finally,we discuss the problem of golden rule in China.Due to many reasons,we believe that the current private optimal savings ratio in China is not equal to social optimal savings ratio and reduce savings ratio could be a Pareto improving.

Abstract:This paper selects the panel data of Chinese urban and township inhabitants from 1991 to 1998 by using instrumental variables and GMMgeneralized method of moments to estimate the precautionary savings model.The research results reveal that Chinese urban and township inhabitants have obvious precautionary savings motivation.The second section of this paper briefly reviews the similar studies conducted in China and abroad,focusing on Dynans precautionary savings model.The third section explains the data and the estimation method adopted in this study.The last section presents the results of the empirical study of the precautionary savings of Chinese urban and township inhabitants and the theoretical analysis of factors that cause the Inhabitants precautionary savings.