Abstract：In this article, we try to incorporate insights of Evolutionary Economics into Marxian theory, by proposing that different firms could apply different technologies or different modes of production, on the basis of specificity in the production of organizational knowledge, to make products belonging to the same sector.A new model is constructed which is termed dynamic hierarchical structure of intra-sectoral competition, in contrast to traditional Marxian model.The intra-sectoral competition is thus transformed into market share competition based upon different ratios of use-values and prices among different firms, i.e, the metabolistic competition.We attempt a research of new forms of the law of value under dynamic hierarchical structure of intra-sectoral competition and build up a model by combining two Marxian concepts of socially necessary labor, in order to explain so-called metabolistic competition.A new definition of competitive advantage at firm level as well as different types of intra-sectoral metabolistic competitive relations is analyzed in the light of this model.
Key Words：Dynamic Hierarchical Structure of Intra-sectoral Competition; Metabolistic Competition; Law of Value
JEL Classification：B52, D20

Abstract：Based on dual-track interest rate model and simulation, this paper analyzed the micro mechanism from regulated deposit rate to market-determined loan interest rate, and the interaction between removing deposit rate ceiling, lower the entry barrier to banking sector, and liberalizing capital account.It is suggested that removing deposit rate ceiling will not increase financing cost, but decrease loan interest rate by offering more loanable fund.It also enables domestic banks to face more rigorous competition both inwardly and outwards.Thus interest rate liberalization should be carried out before opening up capital account and lowering entry barriers.One potential risk theoretically is some banks may have to exit the market after liberalizing interest rate.However, since the government controls bank entry closely, the number of banks in China is far below long-tern equilibrium.Thus interest rate liberalization will not lead to bankruptcy.
Key Words：Interest Rate Liberalization; Deposit Ceiling; Capital Account Liberalization
JEL Classification：D21, G21, G28

Abstract：The credit cycle affects the company's financing purposes firstly and then affects financing decisions.In this paper, we investigate the impact of credit supply on the substitution between liquidity needs and long-term funding needs.Using Chinese listed companies quarterly report data and building different proxies for credit cycle, we find that credit supply cycle significantly affects the companies' financing purposes and the credit crunch will reduce the probability of long-term funding needs.Moreover, the alternative option will affect investment behavior which leads the firms to reduce capital expenditure.This conclusion is not only highlights the importance of credit supply cycle, but more emphasis on the role of demand-side factors in the effect of monetary policy transmission.The implication is that it is more important to pay attention to the change in the capacity and the pace of credit supply than only focus on the quantity.The policy makers may adjust the credit supply based on the financing purposes of firms.
Key Words：Credit Supply; Financing Decisions; Corporate Investment; Monetary Policy
JEL Classification：D92, E51

Abstract：In the paper, we build a backward-looking model and derive both the optimal interest rate rules and money supply rules including house prices.The derived interest rate rules can accommodate Taylor rule and the view of whether monetary policy should respond to house prices directly or indirectly.The proper monetary policy index and identification method reduces the endogeneity of monetary policy, so the empirical results are much reliable without the “price puzzle”, which are consistent with theory and the practice of monetary policy and macroeconomic performance.If monetary policy responds to the fluctuation of house prices indirectly, it will be helpful to maintain the continuity of policy and stability of real economic.Moreover, by fully employing both the past and current information from house price fluctuation, contractional monetary policies might have a better effect to keep macro-economic situations under control; On the contrary, it might be better to take expansionary monetary policies to stimulate economy.By contrast, the central bank reacts to the volatility of inflation and output less sufficiently through interest rate, while more sufficiently through money supply.
Key Words：Response of Monetary Policy; Stance of Monetary Policy; Fluctuation of Housing Prices
JEL Classification：E52, G12

Abstract：This paper estimated industrial capacity utilization, technical efficiency and equipment utilization between 2001 and 2011 based on provincial data, compared the different capacity utilizations among industries and provinces, and explored the factors affecting capacity utilization.Result of the estimate indicated that the average capacity utilization of Chinese industry during 2001 to 2011 is 69.3%.Capacity utilization before 2008 showed an upward trend, while that after 2008 fluctuated downward.In the two sub-items of capacity utilization, equipment utilization is lower than technical efficiency, thought the latter has showed obvious downward trend in recent years.In terms of industries, capacity utilization of light industry is generally higher, while that of mining industry, public utilities as well as heavy industry is generally lower.In terms of regions, capacity utilization in eastern region is much higher than the other three regions.Among the affecting factors, economic growth and marketization degree were positively related to capacity utilization significantly, while capital intensity, proportion of state-owned output value and local government investment were negatively related to capacity utilization.
Key Words：Capacity; Capacity Utilization; Technical Efficiency; Equipment Utilization; Data Envelopment Analysis
JEL Classification：L10, O14, R11

Abstract：Based on the assortative matching model, this paper explores the microfoundation of Chinese regional income disparity.The complementarities between skills and complexities lead to the positive assortative matching between heterogeneous workers and heterogeneous tasks.The differences of the sets of complexities of tasks between two regions are the fundamental of the regional income disparity after the open policy.Moreover, the immigration of skilled labor induced by higher wage from west to east enlarges the regional income disparity.This paper can also offer a unifying perspective on important phenomena such as the flow of peasant workforce and the so called China's World Factory, the migrant labor scarcity and industrial transfer across regions, cross-regional immigration of skilled labor from west to east, and the regional protectionism.
Key Words：Regional Disparity; Assortative Matching; Labor Migration; Wage Inequality
JEL Classification：D20, F16, O12

Abstract：There has been a quarrel about whether business cycle is endogenous or exogenous in the economics.We find that the residents' income distribution obeys normal distribution in most countries, and this characteristics of income distribution determine that consumption demand as well as the economy as a whole expresses endogenous growth cycles.The enterprise innovation and the income gap will change the growth cycle patterns of consumption demand, and moderate income gap is crucial to economic growth.The empirical analysis on China's durable consumer goods provides important support for the conclusion of theoretical analysis.An important policy implication of the theory is that speeding up technological progress and narrowing the income gap are crucial to promote sustainable and relatively rapid economic growth to the future.
Key Words：Residents' Income; Normal Distribution; Business Cycle; Endogenous Mechanism
JEL Classification：E30, E32

Abstract：Based on the data from urban household survey(UHS)in year 2000 to 2009，this paper tests whether retirement consumption puzzle existing in China and explores its reasons, using two estimation methods of IV parametric and non-parametric in regression discontinuity framework and taking advantages of the exogenous shock on urban households retirement decision made by mandatory retirement policies.We found that retirement reduces total non-durable expenditures by about 9 percent, reduces household work-related expenditures by about 25.1 percent, reduces entertainment expenditures by about 18.6 percent and food expenditures at home by 7.4 percent; The reduction of expenditure over retirement is mainly caused by the reduction of work-related expenditures and entertainment expenditures; Households of male head, such as company worker, single, low-educated and low-saving are easy to reduce non-durable consumption over retirement.After excluding above four components, retirement hasn't significantly negative effect on the remaining expenditure, consumption smoothing hypothesis can be established.
Key Words：Fuzzy Regression Discontinuity Design; The Retirement Consumption Puzzle; Aging; Expand Consumption Demand
JEL Classification：D12，E21，J26

Abstract：This paper studies the relationship between economic growth and corporate performance from the perspective of the agency problem of government and of corporate.This paper intends to clarify the path through which the macroeconomic environments affect the micro corporate performance.In regions of low marketization, local governments have more discretion to allocate economic resources toward SOEs, and thus the agency problem of government exacerbates.In terms of growth, SOEs tend to focus on scale.The empirical findings indicate that for SOEs, the relation between sales growth and GDP growth is stronger than that for Non-SOEs.In regions of high marketization, the agency problem of government alleviates, and the organizational infrastructures of Non-SOEs can mitigate the agency problem of corporate, and thus the corporate puts more weight on intensive growth(earnings)rather than extensive growth(scale).Accordingly, the relation between earnings growth and GDP growth is stronger for Non-SOEs.
Key Words：Agency Problem of Government; Agency Problem of Corporate; Economic Growth; Corporate Performance
JEL Classification：G38, M48

Abstract：The understanding of the impact of stock index futures trading on the stock market jump risk has great implication in improving financial regulations and risk management.It also helps to understand the function of futures markets, market microstructure and information efficiency.Based on the 5-minute high-frequency data, this paper investigates the effects of CSI 300 index futures trading to the jump risk of the spot market.We first use a nonparametric method to detect Lévy-type jumps in CSI 300 index, and then decompose them into big and small jumps.And the changes of the jump intensity, jump size as well as jump activity index, before and after the launch of the index futures, are investigated to evaluate the impact of the index futures trading.We further examine the Granger causality relationship between jumps and trading activities in futures markets.The main findings are summarized as follows：(1)Index futures trading doesn't increase the intensity of big jumps, in contrast, it mitigates the size of big jumps and thus reduces the spot market jump risk;(2)Index futures trading increases the intensity of small jumps due to the speculative trading in the futures market, hence increases the jump risk;(3)The spot market jump risk generates a feedback effect to the trading activities in the futures market, but jumps with different sizes generate different impact.The results of this study imply that the impacts of futures trading on the jump risk are double-edged, and the efficiency of Chinese futures market needs to be further improved.
Key Words：Index Futures; Lévy Jump; Nonparametric Method; Granger Causality; High-frequency Data
JEL Classification：G14, G18, C12, C14

Abstract：This paper estimates China's production and consumption-based carbon emissions during 1995—2009 based on multi-regional input-output model and world input-output database and applies structural decomposition analysis (SDA) to investigate relative impact of various factors on their changes. Results show that China's production and consumption-based carbon emissions increased significantly and production-based emissions were higher than consumption-based emissions in the study period especially after China's accession to the WTO. Substantial emissions in China's production-based emissions served final demands of developed countries while most of China's consumption emissions were generated domestically. Results of SDA show that growth of domestic final demand and change of domestic production structure were two main drivers of China's production and consumption-based emissions. The change of emissions intensity of production in China greatly offset the increase of production and consumption-based emissions. Other important drivers of china's production-based emissions include enhancement of China's forward international industry linkage, growth of final demands abroad and increase of their production sources in China.
Key Words：Production-Based Emissions; Consumption-Based Emissions; Emission Displacement through Trade; Multi-Regional Input-Output Model; Structural Decomposition Analysis
JEL Classification：C67, F18, Q54, Q56, R15