Abstract：This paper proposes an intenational cap and trade system to address the climate issue. The global cumulative anthropogenic CO2 cap from industrial revolution to the middle of 21st century that could limite the global warming within 2℃ is entitled equally to each individual person. So each country's emission account is entitled with an original budget based on its current population. Currently, the developed economies run huge deficits while developing ones surpluses. But it is not the case that deficitcounties are not allowed to emit in the coming four decades. On the contrary, this proposal allowed those countries with higher emission productivity to emit more than their original budget if and only if they could balance their account by the middle of 21st century throw the approaches such as buing from other countries, technology transfer, etc. That emission trade arrangement will lead to efficient allocation of scarce emission cap.
Key Words： National Emission Account; Cap and Trade; National Emission Reduction Performance Index

Abstract:Based on production, cost and equilibrium theory in microeconomics, first, this paper makes use of cost function method proposed by Berndt & Morrison(1981) and the Generalized Method of Moments of Panel model to measure the capacity utilization rate of twenty-eight heavy industries and light industries of China from 1999 to 2008 respectively, according to which we get seven industries with excess production capacity and then analyze the features of volatility on manufacturing industry development; and then establishes a varying parameter panel model, which makes use of empirical analysis to prove that the investment in fixed assets is the direct cause of the excess production capacity for the seven industries with excess production capacity. In response to the phenomenon of the macro-control policies have little effect on curbing investment in fixed assets, we elaborate the underlying causes of excess production capacity.
Key Words:Excess Production Capacity; Cost Function Method; Features of Volatility; Fixed Assets Investments; Panel Data Model

Abstract：In light of competence effect and heterogeneity in investors' attitude toward uncertainty, we slightly generalize max- min expected utility (MEU) to allow for a full range of uncertainty attitudes and conduct theoretical analysis on optimal portfolio choices, full and limited market participation conditions, equilibrium equity premium, and the influence of market participation on individual utility and social welfare. Conclusions are drawn that limited participation may endogenously arise from great heterogeneity in uncertainty attitudes, a high level of model uncertainty, or a large proportion of investors with a relatively high subjective competence level. And we find that limited participation arising from different reasons has distinct implications for equilibrium asset prices, individual utility and social welfare.
Key Words： Investor Confidence; Market Participation; Asset Prices

Abstract:Funds in China are usually awarded as speculators by the press, which bring them with negative evaluation by capital market. Our paper is the first one applying quarter data from 2002 to 2008 to investigate if funds investments are pursuing value from motivation and consequence aspects, and further categorize fund investment activities into taking initial position, liquidating and adjusting position. The results show that funds as informed traders are capable of forecasting stocks' future value. Meanwhile, after the fund investment activities, stock price could evidently reflect the future value in advance, which improves the pricing efficiency of capital market. In general, fund's investments pursue value of stocks. This paper thus has some theoretical significance and policy implications in objectively investigating the role of funds and scientifically developing institutional investors in our capital market.
Key Words:Funds; Value Investing; Speculation; Stock Return; Earnings Forecasting

Abstract：The importance of legal systems and legal origins has now been recognized by more and more economists. But no effort has been made to study the consequences of legal origins on the entry modes of foreign investments. Based on the transactioncost theory, this paper presents an empirical study on this issue by using a census data of FDI firms in China. The results show that the legal origin has significant impacts on the entrymode decision making of foreign investors: investors from the countries that share same legal origin with the host country (China) are more likely to choose the entry mode with higher degree of control, including establishing wholly owned ventures, and holding more shares in equity joint ventures or contractual joint ventures. Such impacts are found to be less significant to some extent in the new cohorts of FDI firms, probably due to decreasing degree of uncertainty faced by the foreign investors during the continuous improvement of legal and business environment in the economic transition.
Key Words：Legal Origin； Transaction Cost； Entry Mode

Abstract：From the perspective of “asymmetric competition”, this paper answers the following questions: (1) Why some large and medium state-owned enterprises(SOEs) can eam exorbitant profits in recent years? (2) How the monopoly of SOEs harm economic growth and social welfare? (3)Why the private enterprises(PEs) can not grow rapidly? We find that the SOEs‘profitable condition is that the ratio of SOEs marginal cost to PEs’marginal cost is small enough, which depends on the number of enterprises and ownership structure of market. The large and medium SOEs‘profit is equivalent to a kind of hidden subsidies. We also find that it is important for private enterprises growth and social welfare to introduce competition in upstream market.
Key Words： Upstream Market Monopoly; Downstream Market Competition; Asymmetric Competition; SOEs’Profits; Social Welfare

Abstract：While keeping a high-speed growth since adoption of opening-door and reform policy, China has also encountered several business cycles caused by internal reform as well as external factors. From the perspective of long-run growth, this article makes an empirical study on the effect of business cycle on China’s productivity growth with provincial panel data ranging from 1985 to 2009-The findings show that the business cycle has no impact on economic efficiency in the whole sample period, yet negatively affected economic efficiency in the post-1997 sub-period, i.e., economic recession helps improve economic efficiency; technical change is a cyclical, i.e., technology level is likely to be improved during recession. Some policy implications based on these findings have been made.
Key Words：Business Cycle; Productivity Growth; DEA; H-P Filter

Abstract：Drawing on a nation-wide sample of private enterprises in China, we study the effects of business owners‘social status and economic achievements on their firms’likelihood and level of philanthropy. We find in addition to the significant impact of business owners’economic achievements on firm philanthropy, firms whose owners have political titles (deputy of People’s Congress or People‘s Political Consultative Committee) or act as members of local industrial organizations (industry associations or National Industry and Commercial Association) are more likely to donate and donate more to charities. However, there is no significant difference in terms of firm donation likelihood and amount between business owners who are members of parties (Communist Party or other democratic parties) and those who are not. These findings suggest that perspectives of social expectation or role playing of business owners can be used to explain the variances of corporate philanthropy.
Key Words： Business Owner; Social Status; Economic Achievement; Corporate Philanthropy

Abstract：Using monthly grain price data of 189 prefectures in 15 provinces from 1742 to 1795, we compare market integration of in southern and northern China in the 18th century. With regression and cointegration analysis, we find that in the eighteen century, the southern markets were more integrated than the northern markets. Robustness checks on region size and grain types, as well as analysis on weather shocks and the role of governments, show that our results are stable. Furthermore, we find that different transportation conditions, especially waterway conditions, contribute to the regional difference of market integration. Constrained by their natural conditions, rivers in the north, especially the Yellow River, were not able to facilitate market development as much as rivers in the south.
Key Words： Grain Prices; Qing Dynasty; Market Integration; Regional Difference; Transportation

Abstract：One of newly-developed incomplete information macroeconomics is described as sticky information theory which is summed up in this paper. The source, measurement of information stickiness, consumer‘s behavior features, the dynamic relationship between inflation and output and general equilibrium model with sticky information are introduced. The rule, transparency and credibility of monetary policy under sticky information environment are additionally provided based on the relevant literatures.
Key Words： Sticky Information; Philips Curve; Business Cycle; Monetary Policy