Abstract：This paper introduces productive service and consumption service in an endogenous growth model, and we assume that both kinds of service can be provided by the government or market.We explore the impact of public service provision mode on economic growth and social welfare.It is found that when the productive service‘s externality is large, the productive service should be provided by the government and the consumption service should be provided by the market.When the productive service‘s externality is small, both kinds of service should be provided by the market.We further assume that the government could levy lump-sum taxation to finance for consumption service, and we find that the social welfare under market’s provision is larger than that of government‘s provision.This paper’s conclusion offers some theoretical foundation for the marketization of public service.
Key Words：Productive Service; Consumption Service; Taxation; Economic Growth; Social Welfare

Abstract：In this paper, we develop a threshold autoregression with a unit root model of inflation dynamics and use it to estimate the inflation persistence in China over 1985—2012.An important feature of our model is its allowance for regime shifts in parameters related to the stationarity of inflation dynamics.We find strong evidence of a threshold effect.When inflation rate has risen by more than 3.6 percentage points over a seven month period, the inflation rate is nonstationary.Otherwise, the inflation rate is stationary and maintains a high inertia.The empirical results also suggest that central banks can maintain price stability with market-oriented policy tools when the inflation rate is stationary.Administration measures should be implemented when inflation is nonstationary, so as to control the rising inflation and keep the healthy development of the Chinese economy.
Key Words：Inflation Persistence；Administration Intervention; Market-oriented Tools; TAR Model；

Abstract：What’s the effect of international trade in fostering economic growth? Identifying this elasticity has been proven to be difficult empirically.The main reason is the endogenous response of economic growth to trade, thus the estimation lose consistence.This paper uses the data about cost crossing borders for the main 174 countries surveyed by World Bank to identify the effect.These costs contain the number of documents, time (the number of days) needed to export and import, and the unit monetary cost of per container.The cost data can help us to address the endogeneity issues of international trade and also avoid other potential acts through channels that go beyond trade which might affect income, making the estimation more reliable.Our instrument variable 2SLS results show that the elasticity of international trade on GDP per capita is around 0.3 to 0.5
Key Words：Cost Crossing Borders; International Trade; Economic Growth

Abstract：This paper constructs the oversea market access index for cities in China, makes use of the wage equation from New Economic Geography model to test the impact of market access on gender/skilled wage inequality.The conclusion shows that, oversea market access has positive significant role on the urban wage increase, but may widen the gender wage gap and narrow skilled wage gap through the combined effects of export industry agglomeration, firms crowding and technology spillovers.RIF decomposition also confirms that, the price effect of oversea market access widen gender wage gap within low-income group and skilled wage gap within high-income group, but narrow the gender wage gap within high-income group and skilled wage gap within low-income group, while this price effect contributes the majority of the total price effect.
Key Words：International Market Access; Spatial Agglomeration; Gender Wage; Skilled Wage

Abstract：This paper investigates the impact of highway access on urban-rural income inequality, using China‘s county-level panel data from 1999 to 2008-Making use of a very unique and accurate measure of highway access, we find strong evidence that better highway access reduces urban-rural income inequality by 14%—15%.To identify the causal effect, we rely on access to historical postal routes in Ming Dynasty as an instrumental variable for current highway access.For robustness check, we also take the speed upgrade of railways and highway exits into account and use access to hypothetical road network as an alternative instrument variable.Our empirical analysis has important implications for designing China’s infrastructure development policies.
Key Words：Highway Access；Urban-rural Income Inequality；Access to Postal Routes in Ming Dynasty

Abstract：In this paper, we use the latest micro family-level data provided by Chinese Family Panel Studies and Eurosystem Household Finance and Consumption Survey to study the relationship between household assets and consumption.There are few studies in the literature that focus on the relationship between consumption and household assets in China and Eurosystem, and most of them did not distinguish between the different parts of family assets.Our results show that components of household assets have different impacts on consumption.Overall, research findings indicate relatively large housing wealth effects.In marked contrast, the estimated elasticity of consumption spending with respect to financial wealth is smaller.By analyzing the wealth effect of housing wealth in different age group and in different area, we found that the housing wealth has a larger effect on consumption with old people in eurosystem, but this is not true in China.Households have the largest housing wealth effect in Beijing, Shanghai and Guangdong, China.In Eurosystem, households in France have larger housing wealth effect than households in Spain and Portugal.
Key Words：Housing Wealth; Consumption; Comparative Study

Abstract：Screening mechanism promotes export trade enterprises to improve the recruitment threshold, which would raise the threshold for individual heterogeneity produce biased impact on employment.This paper makes degree of exports continued, screening-matching and sex discrimination into a unified analytical framework to build behavior-based model, and uses PSM to analyze the relationship between export and female employment.The study finds that: (1) Exports intensify or ease the sex discrimination will be decided by the level of sustained export, which is not affected by the amount of female employment and the relative amount of absolute differences.(2) The raise of wages intensifies the sex discrimination in employment in high-level sustained export enterprises; however has no influence of low-level sustained export enterprises.(3) The relatively low main business income, the relatively small size of the export companies willing to recruit more female employees.(4) It is still confused that the foreign investment influences the sex discrimination or not.Based on research findings, this paper discusses policy implications of promoting employment equity.
Key Words:Exports Continued;Screening-matching;Sex Disriminatinon

Abstract：Human capital can roughly be decomposed into education attainment and individual capability. It has a significant effect on individual’s income. Formation of human capital has a close relationship with individual‘s growing environment. By means of OLS, 2SLS and simultaneous equation regression, using family dynamic survey data of 2004, the author estimated the effect of growing environment on individual’s income. Results show the effect is very significant. Growing environment had a much stronger effect on individual‘s income than education. Income of those who grew up in urban area is more than that of those who grew up in rural area. Existence of urban-rural and advanced-lagged area disparity on resources allocation will have consistent negative effect on urbanrural income gap, which will further reinforce the former inequality. Thus there is a vicious cycle between them. To break this vicious cycle, government need to allocate more resources to rural areas, especially training and medical resources so as to tighten the gap between urban and rural. Effort from government will shorten human capital gap between urban and rural areas. Besides, measures should be taken to promote rural education so as to enhance rural human capital formation in order to shorten urban-rural inequality.
Key Words：Growth Environment; Human Capital; Individual Capability; Matthew Effect

Abstract：By a game theory model, this paper proves that the compensation packages of public sectors and corporations should satisfy the separating equilibrium if the total compensation level is approaching.“Doubletrack” Pension Scheme is not definitely unfair.Empirical research based on CHNS data finds that there exits heterogeneities of vocational choice and employee demand, but compensation packages do not satisfy separating equilibrium.The reanalysis shows that the paradox origins from the high compensation level of public sectors, which makes the sorting and selection become impossible.Thus, the direction of compensation reform of public sectors is to control total compensation level, rather than solely emphasize the uniformity of the pension benefit and schemes.
Key Words：“Double-track” Pension Scheme;Sorting and Selection Theory;Compensation Package

Abstract：We extend standard RBC model in such way that two production sectors: states owned (F) and non-states owned (E), as well as “dual track” interest rate regime are introduced.Because of financial frictions, F firms are exante more financially constrained than the E firms are.Also, due to financial repression, regulated interest rate and market determined interest coexist.Financial friction and financial repression affect firm‘s debt finance behavior of different ownership types through “balance sheet effect” and “interest rate effect”, respectively.The calibrated model shows that, first, total debt is pro-cyclical, second, debt in F production sector is strongly pro-cyclical, and third, debt in E production sector is counter-cyclical.Using 1996—2011 data of Chinese public firms, both the panel and aggregate analysis show that our baseline model can match those stylized facts regarding cyclical patterns of debt.Moreover, it indicates that both financial frictions and financial repressions are crucial to replicating those facts and both of them tend to amplify economic fluctuation.
Key Words：Business Cycle；Dual Track Interest Rate；Financial Friction

Abstract：This study has investigated whether high quality internal control can increase firms-stock liquidity, and controlled the mediate effect of institutional environment.Sampling from Chinese listed firms from 2009 to 2011, we find that high quality internal control does increase stock liquidity, this, however, just exists in big firms; on average, in province or district with lower marketization level, the role of high quality internal control on enhancing stock liquidity is much more significant, namely, high quality internal control can mitigate the shortcoming of low marketizing level, which is significant in small firms, but not in big ones.In addition, in general, the improving function of internal control on stock liquidity in state-owned firms is much more pronounced than in private firms; we find robust supporting evidence in big firms, while there is partial evidence testifying such general finding in small ones.Further, by comparing the different role of five internal control elements on firms-stock liquidity, we find that internal environment, information and communication have more direct effect on stock liquidity.Our study extends and broadens the literature on internal control and liquidity; what’s more important, our findings have material implication for development of Chinese security market, reform and governance of stateowned firms and internal control practices.
Key Words：Internal Control; Liquidity; Nature of Property Rights; Institution

Abstract：Ownership concentration is an important feature of Chinese listed companies.High level concentration of ownership can reduce managers-opportunistic behaviors, and improve efficiency of decision-making, thus cut cost stickiness.Using data of Chinese listed companies from 2001 to 2010, I test the above hypothesis.The results show that the higher the ownership concentration, the lower the cost stickiness.The paper also finds the relation mainly exists in high marketization situations.In long time window, the effects of ownership concentration fall.The negative relation between ownership concentration and cost stickiness keeps under several robust tests.This paper is not only helpful in understanding of factors which affect cost stickiness in China, but also provides implications for the link of ownership concentration and governance efficiency.
Key Words：Ownership Concentration; Chinese Listed Companies; Cost Stickiness; Marketization