Abstrat:This paper incorporates distribution-lag model into a system of equations to study the nexus of inequality, investment, education and growth in China. The major findings are: 1 Inequality has strong instant negative effect on investment. The effect turns to be positive and then falls down gradually until weakly negative. In the long run, the cumulative effect of inequality on investment is negative. 2 Inequality has moderate effect on education, and the cumulative effect is positive. 3 The effect of inequality on investment overweighs its effect on education, so inequality has a strong indirect effect on growth instantaneously. The effect turns positive and then weakly negative. The cumulative effect of inequality on growth is always negative. Besides, we also find growth reduces inequality. Therefore, narrowing inequality enhances growth, and conversely mitigates inequality. Equality and growth can be achieved simultaneously.

Abstrat:Using a sample of 1354 households in 48 Chinese villages, this paper studies the dynamic effects of major health shocks on household income and the role played by village election in mitigating these effects. Our results show that in the first 12 years after a shock, a shock-hit household on average falls short of its normal income trajectory by 5%—6% and its recovery would take 15 years. In addition, health shocks have a larger effect on poorer and medium households with a smaller stock of initial wealth.

Abstrat:Based on large household surveys for 2002, the relation between income and subsidies respectively out-of-pocket expenditures for health care in China is analysed. The analysis pays particular attention to spatial dimensions. A major finding is that the concentration coefficient for subsidies is as high as 72 percent, much higher than the Gini coefficient of 45 percent. Thus subsidies are dissproportionaly benefiting those better off. The concentration coefficient for the households out-off pocket payments is much lower, 37 percent. These results indicate a fundamental difference with the situation in OECD countries where public sources tend to have small redistributive effects while private financing sources generally have larger negative redistributive effects. The much better off urban residents are more or less the sole gainers of subsidies, while the rural majority are excluded. Among urban household members those living in the eastern region gain on average more from subsidies than those living in other regions. The results can be used as arguments for changes in the profile of subsidies to the health care sector: If rural China, particularly the western region would receive a larger proportion of the subsidies and urban China, particularly the eastern region, would receive a smaller proportion Chinas reputation regarding lack of fairness in funding the health sector would improve.

Abstrat:This paper describes and decomposes wage differences between female and male workers. The results indicate that the main reason that females get low wages is unequal pay within sectors and the wage gap caused by the difference in sectoral attainment is small. The results also reveal that a lion share of the wage differential between females and males is attributable to discrimination rather than to the human capital difference between the two sexes. Eliminating discrimination against females with a focus on intra-sectoral inequality is crucial to reduce the wage differentials between females and males.

Abstrat:Temporary migration due to lack of social security for migrants, rural land tenure insecurity due to frequent land reallocation and abusive land requisition due to lack of functioning land markets are all major policy challenges that China is facing in its economic transition. Most researches so far have neglected the close interrelationships between these issues and failed to analyze them in an integrated framework. The paper aims to establish such a framework and a policy package is proposed to systematically address these issues.

Abstrat:The paper attempts to explore the integrating effects of domestic market in the process of the regional coordinate development. Theoretically, the paper generalizes the conditional β convergence framework to incorporate the integrating effect into the famous Barro Regression Equation. Using data for cities in Yangtze River Delta, the paper estimates large integrating effects in the process of regional integration, and also documents this effect is more and more significant. Furthermore, the paper finds the development in Shanghai has been benefiting the regional coordinate development in Yangtze River Delta since the late 1990s. These findings are robust, and may shed some highlights on how to implement the coordinate development in China.

Abstrat:This paper discusses the market segmentation extension of Melitz 2003 open economy model by introducing the inverse relationship between the fixed cost and the marginal cost. It shows that firms with different kinds of technology all prefer to export when entry costs of the home market are very high. This property may explain that severe market segmentations produce the distortion that Chinese private firms try to explore oversea market instead of home market, which results in rapid expansion of Chinas export.

Abstrat:For renewing our research in 1998 and providing the results of labor productivity comparison to talk about the problems of RMB exchange rate. This paper first discusses Chinese manufacturing performance from multilateral perspective in 1980—2004. The PPPs, relative price levels, labor productivity, ULCs and international prices in multilateral comparison are used to talk about Chinese manufacturing competitiveness. The PPPs are based on the base year 1997. These results are compared with ones in the base year 1987. The findings are as follows: the various PPPs in the base year 1997 in Chinese manufacturing are approximately 3.7 yuan/international dollar. After the middle 1980s, its relative price level is the lowest in all five countries. Furthermore, it has downward tendency. Its ULC is declining since there is some fluctuation. In the 1980s, there was “no catch-up rapid growth” in its labor productivity. However, after 1992, a new beginning has been made with catch up distinctly, though from a very low level.

Abstrat:The operation of monetary policy is an important instrument for the government to control the economy on the macro scope. Different country, different region and different period of economic progress have great difference in their impact and characteristics of the monetary policy. The research of Zhao jinwen and Minjie 2005 indicates that the effect of Chinas monetary policy shows an obvious asymmetry and strong nonlinearity during the period of the first quarter of 1993 to the second quarter of 2004. On the basis of the previous research, this paper determined the type of the transition function for the central bank monetary policy operation by the Tersvirta test in the first place. Then, the breakpoints of Chinas monetary policy operation and specific form of the transition function will be determined through the advanced and complicated T-O-O grid search. The conclusion has significant and direct implications for the improvement of Chinas macro-control policy and the persistent, fast, healthy and harmonious development of national economy.

Abstrat:Frequency and magnitude of earnings management are the outcomes of investor protection in real economy. Earnings management research should not only test their existence, but also estimate their frequency and magnitude. Through assuming the real earning distributed as mixture normality, this paper builds a parametric model for earnings management using all information in the earning data. Based on the model, the frequency and magnitude of earnings management can be investigated. Empirical analyses show that listed companies in China did manage earnings to avoid reporting losses from year 1995 to 2003. Compared to the previous years, the frequencies are higher and the magnitudes are larger in year 1996 ,1997 and in year 2001 to 2003, and they increase along with time from year 2001 to 2003. On average, there are 65% companies with losses managed earnings and the mean ROA is managed upward by 6.5 percentage points from year 2001 to 2003. Earnings management behaviors are more hidden in year 2001 to 2003 than in the other years.

Abstrat:In this article,a dynamic general equilibrium model is developed to address the issue of optimal patent length and optimal patent breadth. It is showed that optimal patent length and optimal paten breadth are all finite. Increase of patent length induces innovation, so as to increase the social welfare. Meanwhile, it leads to distortion of market also, hence decrease the social welfare. But the latter effect of patent is stronger, when paten length is infinite. So, finite patent length is optimal. Paten breadth is correlated to quality of potential imitation product negatively. Potential high quality imitation product brings decrease of monopoly price of patent product, so as to decrease of distortion of market. On the other hand, potential low quality imitation product leads to high price of paten product, so as to spur the innovation. Therefore, finite patent breadth is optimal.