Abstract：In this paper, the convergence model mixed by industrialization and informatization will be proposed in both condition of perfect and imperfect completion. The methodology of stochastic frontier analysis will be applied into this research field of convergence between industrialization and informatization (CII). Based on the panel data from 31 provinces or municipalities in China from the year of 2000 to 2009, there are two findings from the panel data analysis of Chinese CII quality. Firstly, the convergence shows the period of almost 5 years‘ intermittent balance. Furthermore, the path of informatization improving industrialization makes higher contribution towards CII than the path of industrialization improving informatization. Additionally, both industrialization and informatization data represent alternate fluctuations in terms of deviation towards its ideal value, respectively. Secondly, the CII can exert different level of impact upon the transformation of Chinese economic growth, three times of industrial structure adjustments and cutting electric power consumption per GRP unit. With increasing each point of CII level, taken as a percent, the GRP per capital can increase 0.06%.  CII can remarkably reduce the output value proportion of primary industry, enabling the primary industry to move to secondary industry or tertiary industry. In addition, CII can reduce energy consumption per GDP unit to some extent. However, it shows slight influence and cannot show statistical significance.
Key Words：Convergence between Industrialization and Informatization; Quality of Convergence; Nonparametric Estimation; Convergence Coefficient; Deviation

Abstract：Equalization transfer plays an important role in resolving vertical and horizontal fiscal imbalance and is essential for local governments of poor area to provide basic public services. In this paper, we first reexamine the principle of distributing the equalization grants by deriving general formulation, which can be stated that the equalization grants should be distributed such that regions with lower fiscal capacity should receive more grants in per capita terms. And then, using this principle, we investigate distribution of the equalization transfer in China. We show that the principle has not been followed in China and, among the provinces that receive the equalization grants, those with stronger fiscal capacity tend to receive more transfer. The factors of resulting in the miss-distribution mainly include the current practice of distributing the grants on the basis of the number of workers for the government sector (including those who have already retired) and favorable treatment of minority provinces in the distribution process.
Key Words： Equalization Transfer; General Formulation; Standardized Fiscal Revenue

Abstract：There is no value foundation in modern general equilibrium theory of western mainstream economics. An effort trying to develop Marxist theory of general equilibrium has not succeeded too. However, It could be proved that, according to Marx’s labor value theory, there exists one and only one general equilibrium price vector which equates exactly the relevant value vector, under the assumptions of that aggregate profits is equal to aggregate surplus value and aggregate prices is equal to aggregate value of the whole economy. It means that general equilibrium theory could be built on the basis of labor value theory. The paper firstly develops the value system and price system which include technique relations according to Marx‘s theory of social gross product of two departments, then shows that there are infinite general equilibrium price vectors in price system, and lastly determines a “standard” price vector from the infinite general equilibrium price vectors and proves that the standard price vector is necessarily equal to the corresponding value vector.
Key Words：General Equilibrium Price; Standard Price; Value Foundation

Abstract：How the short-term volatility will affect the trend of long-run growth has become a new hotspot. Using provincial data, we find that the volatility has remarkable impact on long-run growth. Before 1978, the correlations between the volatility and the trend of average growth are negative in most provinces and after 1978, the correlations are mostly positive. This paper establishes a endogenous growth model to study the relationship between economic growth and volatility. The formation of the human capital can be divided into natural formation and subjective formation. The factors which affect the subjective formation, such as investment in education, are the keys to determine the direction of the volatility affecting the growth. If the subjective formation dominates the natural formation, the volatility has positive effect on the growth and vice versa. This idea is proved by the history of the last 30 years: before 1978，the investment in education is little, so the volatility has negative impact on the growth, and after 1978, the investment in education is increased, so the relationship of volatility and growth is positive.
Key Words： Cycle’s Volatility; Trend of Long Run Growth; Mechanism of Human Capital Formation

Abstract：Based on the ESDA method, this paper explores the feature of regional linkage and the spatial correlation among China‘s regional per-capita GDP from 1998 to 2009. We find that there exists global spatial autocorrelation all over the country, and this kind of autocorrelation has been increasing since 1998. Meanwhile, the local spatial correlation is gradually being shown. During the last 10 years. With the help of the new-economy-geographical model, we try to explore the effect of the potential market on the regional economic growth in China. The empirical analysis shows that spatial spillover effect is important to the regional economic growth rate. 1% increase of market potential raises GDP per capita growth by 0.47%. In terms of elasticity, the effect of market potential outperforms that of capital. However, the spatial spillover effect among regions will gradually vanish as the distance between regions increase.
Key Words：Regional Linkage; Economic Growth; Spatial Spillover Effect

Abstract：Studying the Motivation for undergoing large-scale regional industrial transfer in China and the impact of housing price' regional differences on interregional industry transfer and upgrading of industry is the focus of this paper. Introducing housing price into new economic geography model,we can find that housing price' regional differences can induce labor mobility and promote industrial transfer. Based on this,using China's 35 large and medium cities' data in 2000—2009, the paper estimates dynamic panel data model.The results show rising relative housing prices between cities will cause relative fewer employment amounts and promote city's industrial upgrading from low-end value chain to high-end value chain. The profound analysis in different regions reveals housing price' regional differences is indeed one important factor for industrial transfer and industrial upgrading in the eastern, central and western regions. Therefore, formulating regional industry development planning scientifically, increasing support for high-end industry in eastern regions and establishing housing policy and housing security system to adapt the industrial transfer will be necessary methods to follow industrial transfer's trend and avoid industrial hollowing in the partial regions.
Key Words： Housing Price' Regional Differences; Labor Mobility; Industrial Upgrading

Abstract：The relationship between bank credit and economic fluctuations is always the focus of theory and practice. In the past, most domestic research only started from the total amount of credit and ignored the effects of structure, which couldn't help us to clarify the role of credit in the economy. After dividing the loan into short-term loan and medium and long-term loan, this paper constructs a small DSGE model to find that short-term loan has short-term stimulative effect to economic growth while it causes the inflation,medium and long-term loan has long-term positive effect to economic growth and restrains the inflation to some extent. Setting the macro data of 1998—2010 as a sample, the FAVAR tests support the above view. On the one hand,this conclusion means that the credit policy and regulation should strengthen the focus of credit term structure. On the other hand, for the proportion of medium and long-term loan increased substantially in recent years, from a new perspective, the conclusion explains “the mystery of the Chinese currency” which refers to the accelerating expansion of money and credit exists with the relatively stable price level.
Key Words： Term Structure of Credit; Short-term Loan; Medium and Long-term Loan; Economic Growth; Inflation

Abstract：Through theoretical and empirical analysis, the paper finds out that the increase of current public expenditure can influence the accumulation mode of labor and capital both among and within three industries, and then improve economic structure and optimize the allocation of resources. Moreover, using data of three industries from 1979 to 2008. This paper employs the Error Correction Model to estimate the long-term equilibrium relationship between public expenditure and dynamic inefficiency in China, and investigate the impact of public expenditure on production factors accumulation in three industries. The estimates imply that investment-pulled mode of economic growth and its concomitant supplying mechanism of public goods can lead the development of the given industry through the mechanism of “rent” creation, and help government achieve their catching-up economic aims by upgrading industrial structure，improving the economic structure and optimizing the allocation of resources and production factors.
Key Words： Dynamic Efficiency; Productive Government Expenditure; Structure Effect; Rent

Abstract：While there is a large amount of financial literature on the contribution of venture capital to start-up companies, there are relatively few empirical studies that identify the role of venture capital in listed companies. This paper investigates the impact of venture capital on investment and financing behavior of listed companies. The result finds that listed companies with a venture capital institute as the shareholder mitigate the over-investment of free cash flow. Venture capital backed companies could also access more short-term debt and external equity, therefore VC could help the companies with in-sufficient internal cash flow to mitigate underinvestment problem. Finally, we find the VC-specific factors including shareholding, syndication, reputation and government background shape the role of VC in the investment and financing decisions of listed companies.
Key Words： Venture Capital; Over-investment; Underinvestment; External Financing

Abstract：Using the sample from the latest two waves of Chinese Longitudinal Healthy and Longevity Survey (CLHLS). This paper investigates the impacts of the New Rural Cooperative Medical Scheme (NRCMS). The result finds NRCMS increases the enrollees' access to the medical service and stimulates their service utilization, and hence improves their health status significantly. Meanwhile, this paper does not find that the enrollees' medical expense burden was alleviated significantly.
Key Words： NRCMS; Policy Evaluation; Medical Care Services; Health Status

Abstract：The elderly health is the strategic issues in the process of aging society. Before economics and other disciplines involved in the study, the elderly health issue was as more as medical concepts. But with the economics and other disciplines being cross and integration, policy makers and researchers have come to realize that value of interdisciplinary research. A growing number of scholars from an economic perspective began a new exploration on the “elderly health” issues. From the socio-economic, behavioral, environmental, genetic factors and their interactions on the health effects of aging, interdisciplinary research is the main trends in this field of study since nearly 20 years. This article will review existing economic researches in “elderly health” from both macro-perspective and micro-perspective，indicating the economists related research in the field of logic, methodology, content, contribution and focus. Based on these studies, this article will provide valuable reference to the development of China's economic research in aging issues.
Key Words：Elderly Health; Economic Analysis; Interdisciplinary Research