Abstrat:This paper builds up an analytical framework within which the quicker improvement of infrastructure in China since 1990s is explained. Based on provincial panel data, the authors not only present an evolution of infrastructure spending and a measurement of the aggregate level of infrastructure, but also empirically identify the determinants on infrastructure spending using GMM. The paper finds that, after controlling for level of development, financial depth, and other variables, FDIdriven competition among local governments, and governance are both significant in explaining the growth of spending on infrastructure. This implies that decentralization, Tiebouttype competition, and governance are all vital to enhancing governments incentive to improve infrastructure.

Abstrat:Based on both western scholars study such as Taylor on a monetary policy reaction function and Chinese condition, this article makes a new forwardlooking monetary policy reaction function, in terms of market interest rateinterbank borrowing rate, regulated interest raterate of deposit and loan and interest rate spread. According to the result from testing its applicability in Chinese monetary policy, we find that on the one hand, the function can well describe the specific path of interbank borrowing rate, rate of deposit and loan, and spread, offer referring criterion for making monetary policy and measure the degree of tightness for monetary policy; on the other hand, the result of test reflects that all of the three kinds of interest rate have an insufficient respond to inflation and output, which indicates that monetary policy of China is an instable monetary policy rule.

Abstrat:From the angle of view of demand size, it is found that the increase of a countrys total income, per capita income, and the size of import and export trade, promotes its R&D expenditure and national innovation capacity, but that the enlargement of income disparity of the country damages. Moreover, income disparity is found to be an important determinant to a countrys innovation capacity.

Abstrat:From the view of existing problems in Chinese public sectors, we have studied the failures of government, and try to find its reasons. Government behavior depends on its targets. If government maximize their own benefits but not social welfare, if there are no constraints of public demand for public sector, government could expand boundary of public sectors as it likes. In this way it could result in the unlimited boundary of public sectors controlled by government. Therefore we give the theoretical proposition that make government distinguished from private sectors clearly. Based on the theory we can identify whether government behavior is good for optimal target of social welfare or for its own benefits. The confusion between public and private sectors also cause price distortion. In condition of reasonable boundary between them, liberalizing barrier to entry and introducing competition in certain constraints could increase public supply, and form equilibrium price in mixture sector with nature of both private and public.

Abstrat:This paper evaluates the impact of privatization on firm employment using a panel dataset of 386 firms in China in the period 1995—2001. Controlling firm and year fixed effects, our panel regressions find that employment grows faster in privatized firms than in pure stateowned firms by a margin of 17.7 percentage points over the base year of 1995. We also study the dynamic impact of privatization on employment growth and find that the performance of privatized firms improves over time. These findings are robust even after we control other performance and financial variables as well as the preprivatization employment history of privatized firms. In addition, we employ the differenceindifference propensity score matching method to check the robustness of our results. The estimates confirm the regressionbased results.

Abstrat:Using the micro data of the NBS Urban Household Survey 2002, this paper studies quantitatively the distributional effects of Public Pension Reform in urban China, from intragenerational and intergenerational perspectives, by measuring lifetime net benefits that urban employees obtain under the public pension system in 1997 and the newest one announced in December 2005, respectively. The results indicate that the regressive income transfer existing before implementation of the reform is improved as a consequence of the 1997 reform. However, the Act of 2005 Reform generates the obvious inclination of the regressive income transfer among people who exceed 40 years old in 2002. On the other hand, from the viewpoint of intergenerational distribution, the intergenerational inequality resulted from 1997 reform is greater than that from 2005 reform. More over, all generations would receive higher lifetime net benefits under the Act 2005 Reform, but it must be based on sustainable pension system and participants full pension contribution during their duration of employment.

Abstrat:The paper analyzed the principalagent theories at home and abroad that are mainly confined in theoretical analyses and are not easy to be used in practice, briefly reviewed relevant literatures on deciding contract profit target and put forward the "Model of jointly deciding contract target" after a case study of principalagent problem in an American company. The paper analyzed the differences and links between the Model of jointly deciding contract target and Weitzman Model of ratchet effect and proved mathematically some propositions for the Model of jointly deciding contract target, described the mechanism of motivation by benefits in deciding the company profit target. Finally the paper made a comparison between the Model of jointly deciding contract target and the Model of incentive design in an American economics textbook. The paper tries to replace the dynamic models of repetitively bargaining in deciding contract target with the onceandforall dynamic model based on the Model of jointly deciding contract target.

Abstrat:In this study, we empirically test the impacts of background of independent directors on corporate performance in China. We find that education background of independent directors do not have any positive effects on firm performance, while our results indicate that "Guan Xi" is key to business success in China. Meanwhile our findings support calls for limits on directorships held by an individual. Overall, in addition to extending growing corporate governance literature, our results provide an important insight into the nature of effective functioning of independent directors and empirical evidence for the reform of corporate governance in China.

Abstrat:In this paper, the cost and profit efficiency level and their evolution of 14 Chinese commercial banks from 1996 to 2003 are investigated. Empirical results indicate that ownership reform has took some significant effect, and the retrieval and adjusting of government also make notable gains in cost efficiency; However, the authors find the profit efficiency scores are well below cost efficiency levels. That means Chinese commercial banks seem to deal much better on the cost than on the profit side as their expertise in generating profits is not as developed as their ability to supply their services in a costsaving way. Our paper provides evidence for a important result that, when the opening time of WTO is coming, how to enhance the profit efficiency of commercial banking sector is becoming the main task of Chinese financial reforming.

Abstrat:"Chinese Closedendfund puzzle" is explained by using the sentiment of imperfectly rational investors, which is proved to be the key factor of asset pricing. Firstly, we argue that Chinese stock market is inefficient by showing excess volatility with Closedendfund price. Secondly, two new hypothesis are raised in order to explain our outcome as same as LST1991 comparing with the different investors structure with CEFs in USA. Thirdly, we prove that the discount of CEFs is a sentiment indicator. Finally, we find that there exists the longterm negative and the shortterm positive influence between sentiment and stock market return.

Abstrat:This paper studies the inherence consistency and compatibility between the construction of harmonious society and the establishment of a modern market economic system from the point of review of modern economics. The paper first discusses basic features of a harmonious society it should have, and investigates relationship between a harmonious society and efficiency, equity, and institutions based on its features and essences. By using some basic theoretical results in modern economics as well as the reform practices in China, the paper then shows the consistency between the construction of harmonious society and the establishment of modern market system. As a conclusion, the construction of harmonious society should be a process of marketizationoriented reform and institutional innovation. Finally, it provides some policy suggestions, and discusses on the responsibilities of Chinese economists in constructing a harmonious society in China.

Abstrat:The role and position of stylized facts in theoretical economics are explored in the paper based on the thinking of Chinas economic development. The findings include that the definition of a stylized fact is the one which can critically reflect and represent the reality and basic features of an economic operation; the set of stylized facts in Chinese economy has not yet found and established, and then require lots of academic effort and time in it; the relationship between the stylized facts and economic theory is in interaction; the procedure of economic research is generally embodied in the extraction of stylized facts from scattered facts, the building of theoretical models on base of stylized facts, the exploration of the truemodels from ordinary theoretical models, and eventually the finding of the economic rules and laws.