Abstract： Through the introduction of knowledge-sector， this paper redefines the production function on the structure in order to analyze the new factor supply that impacts on China’s economic transformation， and the main conclusions are as follows： (1) In order to break through the structural obstacles of growth slowdown and achieve the sustainable growth，we need to cause enough attention to the supply of new productive factors represented by the knowledge-sector， which is the dominant force to across the current development stage； (2) In response to the requirement of demand upgrade after the increase of the residents‘ income in urban， modern service industry has been built by knowledge-sector around the science-education-culture-health-sport， which is in order to ascend “generalized human capital” consumption. The process of production and consumption in knowledge-sector is as well as the process of human capital promotion and innovation endogenesis； (3) Knowledge-sector itself is not only endogenous， but its surplus can promote the development of traditional industry and service sectors， which are beneficial to lead to structural upgrade and to get through consumption and production integration. China‘s innovative growth will be promoted in the future simultaneously with the expansion of consumption demands； (4) Under the dilemma of driving force weakened for physical capital to growth， attaching great importance to the contribution of consumption to the general human capital and promoting consumption and production structure interaction and upgrade， are the key to a breakthrough in economic development.
Key Words： Consumption Structure； General Human Capital； Knowledge-sector；Integration of Production and Consumption

Abstract： This paper investigates the role of value-chain trade integration in influencing business cycle co-movements both across the world and China and its trade partners based on the WIOD database. The main findings are as follows： (1) Valuechain trade not only leads to higher business cycle synchronization but also amplifies the effects of bilateral trade on the bilateral output co-movements； (2) From a global perspective， economic distance， intra-industry trade are the two important factors that influence the function of the value chain trade； (3) China's reality is consistent with the world's regularity： value-chain trade not only influences the business cycle co-movements between China and other countries but also amplifies the effects of bilateral trade on the bilateral output co-movements， except that the influence of intra-industry trade is not significant； (4) Value-chain trade between China and Asian countries is the major factor in explaining business cycle co-movements between China and other countries.
Key Words： Value-chain Trade； Intra-industry Trade； Business Cycle Co-movement； WIOD

Abstract： This paper aims to study whether and how multinational enterprises entry influence manufacturing firms' value chain and change industrial structural of manufacturing sector through using “process composition” to measure “industrial structure” from a global value chain perspective. We have identified several mechanism from which multinational enterprises' entry impacts process composition， constructed a new production function that firm can execute multiple processes， and proved that there are solid linkages between value-added rate and factors (labor， capital， and human capital) intensity with process composition. Micro econometric analysis based on Chinese manufacturing enterprises data from 1998 to 2007 reveals that multinational enterprises' entry cannot only influence traditional factor such as productivity and product composition， but also result in direct impacts on process composition that the transferred processes， on average， process higher labor intensity and human capital intensity than domestic firms， and several indirect effects that entering multinationals not only enhance the relative eliminated probability of firms with low capital intensity， high labor and human capital intensity， but promote survival firms specializing in capital and human capital-intensive processes. Generally， multinationals' entry enhances the proportion of capital and human capital intensive process in manufacturing sector in China. In addition， the paper also discusses the differences effects between multinationals from Hong Kong， Macao， and Taiwan with multinational form foreign countries.
Key Words： Global Value Chains； Processes Composition； Industry Structure； Multinational Enterprise

Abstract： Whether the implementation of corporate social responsibility embodies management self-serving tool or shareholder value strategy？This issue has become a hot issue in the inter-discipline of finance and management field. In this paper， we analyze and reveal the objective performance and the transmission path of corporate social responsibility in stock price crash risk from Chinese capital market. The results show that corporate social responsibility has a significant positive relationship with stock price crash risk. It shows that there is a positive relationship between corporate social responsibilities and stock price crash risk， which indicates that there is a significant crash effect of corporate social responsibility in Chinese capital market. Further study also shows that crash effect of corporate social responsibility is only existed in mandatory disclosure and non-auditing group. Lastly， we also find that crash effect of corporate social responsibility has complete investment path and partial information path， but not accounting path and tax path. In general， we prove that corporate social responsibility reflects the “self-interest tool” rather than “value strategy”.
Key Words： Corporate Social Responsibility； Stock Price Crash Risk； Selfinterest Tool Hypothesis； Value Strategy Hypothesis

Abstract： Drawing on the classic model of federalism， this paper studies the optimal organization forms and relative efficiency of local government bonds financing in two aspects： (1) we find in the issuing of local government bonds， decentralized financing is better in mitigating the soft budget constraint problem， and in promoting local economic growth， while centralized issuance is better in reducing regional disparity in economic development； (2) in the financial design of local government debts， pooling of projects or bonds can provide more market liquidity than non-pooling due to the “ignorance is a bliss” effect. There is an inverted U shaped relationship between information partition and market liquidity. The findings are relevant for the design of local government bonds system both for China and other emerging market economies.
Key Words： Federalism； Local Government Bonds； Transparency； Design

Abstract： Theoretically， reform of “County Directly Administrated by Province” (CDAPR) not only increases tax share of the counties， but also raises their revenues through transfer payments. However， whether CDAPR can strengthen tax competition among countylevel governments (TCCG) or not needs further empirical evidence. This paper investigates the relationship between CDAPR and TCCG. The conclusion indicates that CDAPR significantly decreases industrial companies' real tax rate by 0.45 percentage. The effect of CDAPR is insignificant in 2004； but from 2005 to 2007 it becomes very significant and persistent.
Key Words： County Directly Administrated by Province； Promotion Tournament； Tax Competition； Corporate Effective Tax Rate

Abstract： This paper establishes a DSGE model including zero lower bound under the assumption of markets clearing. By means of mathematical modeling， impulse response analysis and simulation， we compare the transmission mechanism of macro-policy composed of monetary and fiscal policy with and without zero lower bound. The conclusions show that when interest rates are constrained by the zero lower bound， the volatility of economic variables increase considerably， and model without zero lower bound can't depict the economic situation and policy effect in the crisis; while under the zero lower bound， the effectiveness of monetary policy is further reduced， and the effectiveness of fiscal stimulus is quite stable. Finally the related policy proposal is put forward.
Key Words： Zero Lower Bound; Macro-policy; Transmission Mechanism; DSGE Model

Abstract： Using a unique dataset on communication between mutual funds and listed firms in China's stock market， we investigate whether active institutional investors can obtain private information or benefit from their communication with such listed firms. We provide new evidences to social network and the theory of diffusion of market information. We find that： mutual fund managers prefer to visit firms in their holding and with large capitalization， high book-to-market value， good performance， high investor attention， high earning quality， and proximity of location； large and active fund families are more likely to visit listed firms； communication affects subsequent trades of mutual funds； trades of mutual funds which rely on communications significantly predict unexpected earnings and firm performances. Furthermore， our findings are more significant on firms with a low investor attention. Collectively， our results indicate that institutional investors can gain information advantage and make profitable decisions by communicating with firms， which offer clear and significant policy implications.
Key Words： Communication； Mutual Funds； Information Advantages； Unexpected Earnings； Performance

Abstract： This paper investigates the problems when putting the traditional auction theory into practice， and proposes the mediated auction mechanism in the twoside markets. By introducing the payment constraint in the double VCG auction with participation fee framework， we set up parameterized mediated auction models with (fixed or percentage) transaction fee and payment ceiling. We prove that these auction formats achieve truth telling of buyers and sellers， expected budget balance of mediator， and shill-bid proofness. First， we prove the existence of auction parameters in general case， and further discuss the implementation of mediated auction when the value of two players follows uniform distribution. Moreover， we make welfare analysis on the new auctions， and comparing them with optimal auction provided by Myerson (1981)， as the theoretical benchmark，and threshold price double auction (TPD) proposed by Yokoo et al. (2005)， which considers the false-name-bid problem. The results show that， from social welfare and bidders' expected surplus perspectives， both of two mediated auction formats are better than optimal auction and TPD auction； Fixed transaction fee auction format is better than optimal auction， and optimal auction is better than percentage transaction fee auction，however ， two mediated auctions are better than simple auctions without optimal reservation price and TPD auction in terms of expected surplus of the seller. This paper lays the microeconomic foundation for the mediated auction design in the two sided markets.
Key Words： Mediated Auction； Transaction Fee； Payment Ceiling； Truth Telling； Shill-bid-proof

Abstract： With the approach of multiple-changepoint detection for auto-regressive conditional heteroskedastic processes， the paper first demonstrates that economic and financial data have uncertain characteristics of probability and statistics， and thus illustrates the limited applicability of current probability theory in a realistic， dynamic economic environment. Then， we analyze how non-linear expectation theory incorporates all kinds of uncertainty， such as volatility uncertainty and mean uncertainty， in risk modelling and measures risk with infinite amount of possible uncertain distributions. Meanwhile the analysis shows that this recent progress in stochastic analysis and calculus might bring fundamental change to risk management theory and practice. And empirical evidence of the effectiveness of risk measurement based on model ambiguity is provided. Thus， the paper is to contribute to the cutting edge research on uncertainty analysis and risk management and to provide important technical support for managing and maintaining financial stability.
Key Words： Uncertainty； Non-linear Expectation Theory； Model Ambiguity； Risk Measurement

Abstract： This paper employs CHNS panel data from 1989 to 2011 to analyze the pattern of the discrimination on the rural migrants and its transition process. The result shows that rural migrants tend to earn lower wages and suffer higher unemployment rates relative to their urban local counterparts. We employ a fixed effect model and a conditional logit model to control for the unobserved individual time-invariant heterogeneity as well as the assimilation effect to explore the hukou discrimination effects. We find that hukou provides a positive wage premium and a negative effect to unemployment rate. Furthermore， both effects are increasing in the sample periods. These findings provide evidence of a deteriorating discrimination on the rural migrants in the urban labor market from 1989 to 2011.
Key Words： Hukou Discrimination； Hukou Premium； Wage Differential； Unemployment Rate

Abstract： Transfer of land in rural areas could make farmers' labor productivity increase remarkably. In this paper， we construct a farmer household's decision model based on rural land markets and systematically analyze the effects of leasing in and out land on distinct farmer families' labor productivity(income per labor). Subsequently， we get the conclusion below： after finishing the transfer of land management right， the labor productivity of farmer family leasing land in will increase significantly resulting from the rise of agricultural total factor productivity(TFP)； the labor productivity of farmer family leasing land out will increase significantly due to the boost of nonagricultural labor productivity； the labor productivity of farmer family not involved in the transfer of land management right keeps unchanged， but has declined relatively. Aiming to prove the theoretical conclusion， we use the survey data covering 30 counties' farmer families in 21 provinces in China to do the basic empirical analysis， and respectively use proxy variable method and propensity score matching method to do the basic empirical analysis and robust check. The results of basic empirical analysis and robust check are considerably consistent， and highly support the theoretical conclusion.
Key Words： Transfer of Land； Family Labor Productivity； Family Agricultural TFP； Family Non-agricultural Labor Productivity