| Economic Research Journal (Monthly) Vol.45 No.7 July, 2010 |
| • The Impact of School Quality on Regional Labor Productivity |
| Following Behrman & Birdsall 1983,this paper estimates the effects of average schooling school quantity and pupil teacher ratio school quality on labor productivity by exploring Chinese provincial panel data over the period 1980—2005.Our empirical results show that the quality of schooling exhibits a statistically significant and robust positive effect on labor productivity.On average,one standard deviation 0.916 increase of teacher-pupil ratio helps increase labor productivity by 3.09%.The magnitude of the effect of school quantity on labor productivity partly depends on the level of school quality.The higher school quality is,the larger the effect of school quantity on labor productivity is.The results imply that overheated educational expansion without improving the supply of teachers may be inefficient in terms of the school resource allocation. |
| …………………………Zhang Haifeng, Yao Xianguo and Zhang Junsen57 |
| • An Estimate of the Indirect Tax Incidence in Urban Households |
| Using the household survey data and input-output table,we estimate the tax burden of four major indirect taxes in different income groups.In short run,all taxes are regressive。But the regressivities become weak in long run.The value added tax and excise tax are still regressive,but the business tax is progressive.The resource tax is proportional.The tax burden of whole indirect tax is approximately proportional to the income of different income groups. |
| …………………………Nie Haifeng and Liu Yi31 |
| • Development Finance and Urbanization Development in China |
| Nowadays,urbanization is an important way to expand domestic demand,adjust the economic structure and transform the pathway of economic growth.This article indicates the practical significance of forming economic growth pattern relied mainly on domestic demands by urbanization development in China,analyzes the financial budget of urbanization progress and the special function of development finance for easing the financial budget.Based on the empirical facts that CDB uses development finance to support the urban infrastructure construction,ease the finance budget of urbanization and promote the urbanization development,this article puts forward the new thought of improving that development finance supports China’s urbanization and promotes the conversion of economic growth pattern on post-crisis stage. |
| …………………………Chen Yuan4 |
| • The Impacts of Industrial and Services Outsourcing on Productivity: Based on Chinas Industrial Panels Analysis |
| This paper analyses the effects of industrial outsourcing,services outsourcing and overall outsourcing on productivity and employment based on CES production function from the data on China’s input-output tables.Moreover,the effects of technological progress on outsourcing activity modes and productivity growth in industrial sectors are studied.The results show that overall outsourcing and industrial outsourcing contribute a little to labor productivity although these contribution values are positive,whereas services outsourcing contributes much more than others.If we introduce the interaction between technological progress and outsourcing in the equation,technological progress has much larger impacts on productivity growth than outsourcing.The results also reveal that technological progress decreases outsourcing activities in capital intensive industries.However,technological progress increases outsourcing activities in high-tech industries.The main reason is that technological progress changes the internal costs and markets trading costs of a firm so as to alter the firm boundary. |
| …………………………Yao Zhanqi91 |
| • The Impact Effects of Stochastic Disturbances to Economic Growth and Inflation in China |
| This paper decomposes and measures the stochastic disturbances of economic growth and inflation based on the background of Chinas economy,and studies the temporary fluctuation and permanent effects of stochastic disturbances to economic growth and inflation.The results show that China encounters negative demand disturbance and positive supply disturbance average in sample period.Demand disturbances have a hump-shaped positive short effect to GDP and have positive permanent effects to inflation.Supply disturbances have negative permanent effects to inflation and have positive permanent effects to GDP.In the U.S.crisis period,the steady decline of economic growth is stem from negative demand disturbances and negative supply disturbances,and the negative demand disturbances lead to decline of inflation.In 2009Q2,Chinese economy realized recovery,the main reason of recovery was demand disturbance.The permanent components of economic growth are relatively low now and the recovery process is not steady. |
| …………………………Ouyang Zhigang and Shi Huanping68 |
| • Reputation Tournaments in Differentiated Product Markets |
| In this paper we study an infinitely repeated game model in which duopoly firms produce experienced goods that are differentiated horizontally e.g.,taste or geographical differences.After consuming the products,consumers only observe imperfect information about product quality,making this a case of imperfect public monitoring.In a class of equilibria called "reputation tournament," the two firms engage in a contest for mobile consumers who have no particular brand loyalty,which provides incentives to maintain good reputation in addition to the standard reputation incentives through monitoring based on noisy signals.We find that when the products are less differentiated horizontally,firms are more motivated to maintain reputation.Furthermore,compared to "fair tournament",tournament biased to last period "winners" has more great dynamic incentive effect even when firms are homogenous on product efficiency,and the optimal degree of bias depends on the degree of moral hazard and horizontal differentiation of products. |
| …………………………Du Chuang and Cai Hongbin130 |
| • How Does Infrastructure Affect Export Technological Sophistication |
| This paper builds up a model to establish the causal link between infrastructure and export technological sophistication in the framework of firm heterogeneity.Furthermore,by using HS—6 digital trade data from 1995—2004,and the methods developed by Hausmann et al2007 and Xu2007,we measure 101 countries export technological sophistication index and empirically test its determinants,whose results strongly support the prediction of the theoretical model.In addition,human capital endowment,trade opening and FDI also play some positive role,while the effect of natural resources is negative. |
| …………………………Wang Yongjin, Sheng Dan, Shi Bingzhan and Li Kunwang103 |
| • Fiscal Decentralization, Governance and Non-Economic Public Goods Provision |
| This paper studies how the fiscal system and governance under fiscal decentralization with Chinese style affect Public Goods Provision.We find that fiscal decentralization reduces the quality of primary education significantly and remarkably,and the provision of municipal facilities as well.We also find that local governments havent the freedom under standard federalism;and that anti-corruption activities improve the quality of primary education,while cut down the provision of municipal facilities,which implies that there are some rentseeking opportunities.Moreover,central governments transfers to locals increase public goods provision,meanwhile primary education enjoys explicit scale economy,which gives the central finance the priority to play a bigger role in some public fields. |
| …………………………Fu Yong4 |
| • Advance in Macroeconomics: Bewley Model |
| The framework basing on representative agents and complete market hypotheses gradually becomes the mainstream method in analyzing long-run economic issues after the rational expectations revolution.Yet this framework suffered from its two main hypotheses.Afterwards,the Bewley model,which breaks the shackles of those two major hypotheses,has contributed epoch-making analysis in considerable fields in terms of consumption and saving theory,wealth inequality,welfare of macroeconomic policies,and makes it possible to incorporate real estate into macroeconomics.The purpose of this paper is to give a systematic debrief on Bewley model research.In addition to outlining a general Bewley framework,we also summarized all specific studies in each field.At last,we reviewed the prospect of Bewley model’s development,solving method and its application on economic issues in China. |
| …………………………Chen Yanbin, Qiu Zhesheng, and Li Fangxing141 |
| • Quantifying SectorLevel Balance Sheet Contagion——Chinas Macro-Financial Risk Analysis |
| By using Chinas 2007 flow of funds data,we construct the simulated sector-level network of bilateral balance sheet exposures.We then prove that the cross-sector financial linkages through all types of financial instrument categories constitute the shock propagation channels.Thus,the network models of instrument-specific bilateral exposures facilitate simulations and stress testing to demonstrate shock transmission process and measure the balance sheet contagion. |
| …………………………Gong Xiaolin（Caelyn）and Bian Jiang79 |
| • A Study on Chinese Urban Residents Financial Exclusion: Empirical Evidence Based on Micro-Survey Data |
| There exists serious financial exclusion for Chinese urban residents in their savings,mutual fund investment,insurance,and loan,i.e.,they can not get those services in a proper way.What factors Lie behind this financial exclusion Based on a survey of Chinese urban resident investment behaviour in 15 cities in 2007,we find that both the increment of household assets and the enhancement of social interaction could reduce the probability of financial exclusion in those four kinds of financial services,and the non-existence of saving exclusion plays the same role in the financial exclusion for mutual fund investment,insurance,and loan.Moreover,for financial exclusion in any specific financial service,there are different factors which have significant explanatory power.These findings have important policy implications.Solving financial exclusion is a must to maintain and improve Chinese household welfare,which in turn requires the government to pay attention to promoting household assets accumulation,improving the social interaction and making sure people have certain savings. |
| …………………………Li Tao, Wang Zhifang, Wang Haigang and Tan Songtao15 |
| • Multi-Types of Public Expenditure and Economic Growth: A Framework |
| The paper develops an endogenous growth model which involves multi-types of public expenditure,such as pure productive,pure consumptive and productive-consumptive mixed expenditures with various production elasticity or consumption elasticity respectively.In such a framework,we discuss the mechanism of multi-types of public expenditures enhancing growth and welfare,and also the existence and uniqueness of social optimal path,and give a series of optimality conditions for various types of public expenditure.The welfare properties of decentralized equilibrium are analyzed in various financing patterns.The analytic optimal solutions of three typical types of public expenditure and relevant comparative static analysis are also studied through a special example.And finally the specifications of some public services with congestion and excludability are discussed. |
| …………………………Jin Ge and Shi Jinchuan43 |
| • Employee Incentive, Wage Rigidity and Firm Performance：Empirical Evidences from Chinese Unlisted SOEs |
| Wage is one of the most important means to motivate employee.Our research based on 556 unlisted SOEs in Shandong province finds the evidence of downward and upward rigidity of employee wage.In the enterprises whose employees wage have not rigidity,we find that the positive relationship between wage growth and the enterprises performance,the wage growth have incentive effect on employee;but in those that have rigidity,we do not find the significantly relationship between wage growth and the enterprises performance of the neighbor period,the incentive effect of wage growth on employees is weaken.Compare to downward elasticity,the relationship between the upward elasticity and the future performance growth is more positive;Compare to upward rigidity,the relationship between the downward rigidity and the future performance growth is more negative. |
| …………………………Chen Donghua, Fan Conglai, Shen Yongjian and Zhou Yahong116 |
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