Working Papers
WP1227Title:Cash Conversion Cycle and Firms’ Credit ConstraintsAuthor:Li  Zhiyuan  and  Tang  Xueliang   View Count:19
       Abstract:Financial shocks affect firms’ performance through credit constraints. Factors that determine credit constraints, however, are not sufficiently investigated in existing literature. This paper identifies, analyses, and tests one such factor, the Cash Conversion Cycle (i.e. CCC). Specifically, we develop a “Bank-Firm” model which incorporates incomplete information in the sense that firms’ productiv
WP1229Title:Social Network and the Sustainable Development of Microfinance in ChinaAuthor:Su  Dongwei,  Chen  Chunchun,Xu  Zhenguo  and  Li  Bin   View Count:21
       Abstract:How to improve social performance and sustainability of microfinance towards an inclusive financial system has been an unresolved problem in social sciences. This paper is one of the first to apply social network analysis to studies of microfinance development. Building a set of 9 indicators grouped undernetwork structure, network types and relationship attributes, we create an innovative measur
WP1228Title:Sub-national Fiscal Pressure and Tax Sheltering for Enterprises——Theory and Empirical Evidence from ChinaAuthor:Chen  Sixia,Xu  Wenli  and  Huang  Duan   View Count:24
       Abstract:In this paper, we make a theoretic model to analyze the way that sub-national fiscal pressure is formed and make out the optimal tax strategy to relieve this pressure. In the theoretic model, it shows that sub-national fiscal pressure doesn’t have an obvious impact on the real income tax rate whose revenue is owned mainly by central government. However, it increases the real sales tax rate whose t
WP1227Title:Unbearable Burdens--Value of Statistical Life Based on the Cost of Fatal Occupational Injuries in ChinaAuthor:Zhang  Guosheng,Chen  Ying  and  Chen  Mingming   View Count:19
       Abstract: Guided by the life value theory and based on the data from China Family Panel Studies (2010) and The Safe Production Statistics Yearbook (2009), this study utilizes the hedonic wage model to evaluate the value of statistical life (VSL) of Chinese laborers in 2010.The linear model estimation of the level of fatal risks on the wage level shows that the VSL of laborers is 3.57 million yuan; the quan
WP1226Title:Why Does Barter not lead to Monetary Institution?Author:Zhang  Jie   View Count:51
       Abstract:In the history of money theory, a universal belief has been that monetary institution originated from barter. However, a careful review of relevant literature reveals that this taken-for-granted belief is a fallacy. In the paper, the author argues that the “barter” theory was created out of Smith’s intention to protect free market. It was purely made-up and has therefore been faced with the defian
WP1225Title:Housing Bubbles and Housing Wealth EffectAuthor:He  Xingqiang  and  Yang  Ruifeng   View Count:57
       Abstract:Using China urban household survey data collected from 41 cities in 2009, with housing-price-to-income ratio as a proxy variable of housing bubble, we investigate whether the housing bubble affects the housing wealth effect of household consumption. We also examine the impact of housing bubble on housing wealth effect of different households, including those who own two or more houses, have houses
WP1224Title:Interest Rate Control and Capital Misallocation——A Quantitative Analysis Based on Vertical Production StructureAuthor:Chen  Xiaoliang  and  Chen  Weize   View Count:50
       Abstract: The vertical production structure -- monopolistic state-owned enterprises (SOE) take control at upstream industries while non-state-owned enterprises (NSOE) compete at downstream industries -- results from the subsidies and monopolistic pricing power to SOE, and upstream entry barriers, and therefore leads to severe capital misallocation between SOE and NSOE. This paper develops a dynamic general
WP1223Title:Pay Gap and Firm Innovation in ChinaAuthor:Kong  Dongmin,Xu  Mingli  and  Kong  Gaowen   View Count:82
       Abstract:Although the pay gap between executives and employees has received considerable attention, its economic consequences remain unclear due to the unavailability of data. In this study, we examine the effects of the pay gap on firm innovation by using data from Chinese listed companies. We show that: 1) pay gaps between management and employees enhance firm innovation, supporting the tournament theory
WP1222Title:Financial Agglomeration and Hierarchical Urban Systems: A Study Based on Loan Balances of CitiesAuthor:Liang  Qi,Wang  Ruyu,Wang  Zhigao  and  Chen  Jianlong   View Count:50
       Abstract:Financial industries typically exhibit hierarchical spatial structures in modern economies. Based on the data of loan balances of cities and the number of permanent urban residents in China, using the core density estimation and regression analysis, we find that the hierarchical urban and financial structures essentially match each other, although the latter exhibits a higher degree of concentrati