Abstract：From point of international labor division，we put forward the theoretical hypothesis that institution quality，integration into intra-product specialization and the two items interaction can improve export sophistication. Base on the method given by Haussmann et al.（2005），we calculate 62 countries‘ export sophistication by using HS92 6-digit trade data covering from 1996 to 2010. On the basis of which，we carry out empirical analysis by using OLS and System GMM，and results indicate that，better institution quality as well as integration into intra-product specialization can help improve export sophistication，at the same time，interaction of the above two items also can help improve export sophistication. Therefore，with Chinese demographic dividend diminishing，in a new round development of open economy，we should create new competitive advantage by releasing institution dividend，so that we can improve export sophistication by integrating into intra-product specialization further.
Key Words：Intra-product Specialization；Institution Quality; Export Sophistication
JEL Classification：E23，F10，O11

Abstract：Based on the theory of Anderson-Neary‘s Trade Restrictiveness Index，this paper uses a computable general equilibrium model to measure the protection level and structure of our agricultural products market access policy. Also we test the sensitivity of the measuring results. It finds that after China’s access to the WTO，the protection level of our agricultural products market access policy lowers significantly. While after the sub-prime crisis in 2007， the protection level goes up obviously. And later in 2011，the world economy recovers and develops，and the protection level of our agricultural products market access policy declines distinctly. Meanwhile from the protection structure point of view，at present the adjustment of the protection level of NTB-constrained products，intermediate products，labor-intensive products， consumer-oriented products，animal by-products and other products will be more effective to the adjustment of the protection level of our agricultural products market access policy. Besides，the sensitivity of the measuring results to different elasticity values is low，and the calculation results are relatively steady.
Key Words：Trade Restrictiveness Index; Market Access of Agricultural Products; Protection; Tariff Policy; Non-Tariff Barriers Policy
JEL Classification：F13，F41

Abstract：Technology progress is the result of technology innovation or technology introduction，and is reflected through promotion of the total factor productivity. But technological innovation or technology introduction to improve the total factor productivity is only the necessary conditions for technological innovation or technology introduction to promote the transformation of economic growth mode，but not the sufficient condition. Technology innovation theoretically had uncertain role on the change of the pattern of economic growth because of the influence of technology introduction dependence，opportunity cost of technology innovation and reverse spillover effect of domestic enterprises. The role of technology introduction is uncertain on the transformation of economic growth pattern because of the influence of the technology gap between domestic enterprise and foreign enterprise and absorption capacity of domestic enterprise. The empirical analysis is made by dynamic panel estimation with 28 area panel data from 1996 to 2011. The results show that technical innovation has significant negative effects on intensive level of economic growth，spillover effect of FDI technology and imitation innovation have significant positive effect on the intensive level of the economic growth. Therefore，further expand for the opening to the outside world，the strategy of technology introduction continues through the inflow of FDI，the digestion of import technology would be strengthened，the intensity of technological innovation and personnel training would increased efforts， the ability of technological innovation would be consolidated and enhanced.
Key Words：Technology Innovation；Technology Introduction；Imitation Innovation；Intensive Level of Economic Growth；GMM
JEL Classification：F21，F40

Abstract：As the main means to support the development of strategic emerging industries，Chinese government has had a huge subsidies on these industries.How does the performance of government innovation subsidies? However，we conduct a systematic study on this issue.First，creatively choosing these listed companies of strategic emerging industries as representative research sample，we manually collect and sort the system data of innovation input and output over the period 2010—2012 from these firms‘ prospectus，regular reports，daily information disclosure information as well as company’s web site and so on.Secondly，building a translog CDM model which includes spillover effect，we estimate innovation subsidies on the output performance of Chinese strategic emerging industries‘ firms since 2010 by iterative threestage least squares(IT3SLS)method.Thirdly，using partial least squares(PLS)method we analyze the main factors affecting performance of subsidizing innovation.Results show that，(1)both R&D spillovers and subsidizing innovation positively affect firms performance；(2)R&D spillovers output elasticity is much higher than the output elasticity of subsidizing innovation which is small for a single enterprise；(3)corporate governance mechanisms and financials are significantly related to the performance of subsidizing innovation，the PLS method regression coefficient in descending order：asset-liability ratio，independent directors ratio，integrated lever coefficient，fixed assets ratio，controlling shareholder stake.
Key Words： Strategic Emerging Industry；Innovation Subsidies；Innovation Performance；CDM Model
JEL Classification： L32，O31

Abstract： If rent-seeking is very attractive，the social elites will join this kind of pure redistributive activities，but not those productive business activities. This kind of talent misallocation will lead to output loss. From Murphy et al. (1991)，some literatures discussed the theoretical mechanism of rent-seeking and talent misallocation caused by it. However，these researches did not answer the question：how much is the output loss of this kind of misallocation? In this paper，we construct an overlapping-generation model (OLG) with heterogeneous individuals and endogenous occupation choice，and use this model to estimate the exact social cost of talent misallocation. In the case of medium attractiveness，the return of rent-seeking is not big enough to attract the elites; the social cost is still significant：output is in the range of 80%—90% compared with the benchmark. In the case of rent-seeking is very attractive，the social cost is disastrous. Our numerical result indicates that the talent misallocation caused by rent-seeking is the key to understand the different development routes and peoples living standards of different countries. Therefore， changing the game rule to make the creative talent to choose the occupation that can expand the economic pie is the way to increase the social output and peoples living standards.
Key Words：Rent-Seeking; Talent Misallocation; Social Cost
JEL Classification： D24，D72，O12

Abstract： Since the reform and opening，China’s economy has maintained growth miracle for more than 30 years. However，the government investment in public education is far below the world‘s average level. Human capital is one of the most important input factors for economic growth; while from the perspective of human development， the improvement of human capital is also the key purpose of economic development. This paper builds an overlapping generation model of education investment， which illustrates that， as long as there exists income uncertainty and financing constraint， the level of education decided by the residents would be lower than the social optimal level. The government‘s investment in public education has both financing effect and insurance effect， which can improve the social human capital as a whole. The empirical test based on OECD data shows that the increasing of government’s public investment in education can promote the accumulation of human capital. This promoting role is more prominent in the countries with larger income risk and more serious financing constraint. Based on the theoretical conjecture and empirical test， this paper concludes that， in face of incomplete market economy， mismatching between human capital and income， apparent income risk faced by labors， and serious income inequality， China should increase the government’s investment in public education and improve the education investment efficiency in order to accelerate the human capital accumulation.
Key Words：  Income Risk; Financing Constraint; Public Education Investment; Human Capital Accumulation
JEL Classification：  H52， H24， I22

Abstract：It is well known that China’s consumption rate is continuously decreasing， but on the other hand， a lot of effective demand could not be satisfied. This paper constructed a multi-sector dynamic general equilibrium model， and tried to consistently explain these seemly paradoxical phenomena. According to this research， when the government restricts the supply of goods in some important sectors， consumers‘ demand for these goods cannot be supported， but their demand for goods in other sectors will not grow as fast as the supply expansion. This leads to a lower consumption rate and compels the economy to resort to export for the purpose of maintaining high growth rate. This research also found that the service industry in China grew at a rate that was 38% lower than its potential level after 1992， which measured the extent of supply restriction in China. Based on this finding， this model explained more than 60% increase in the saving rate and many seemly paradoxical phenomena in China.
Key Words： Supply Restriction; China’s Economy; The Saving Rate; Insufficient Demand; The Service Industry
JEL Classification： E21，F41，F47，O11

Abstract： This paper first theoretically explores the mechanisms through which tax incentives affect firm entry， and then studies the effects of tax incentives on firm entry using firm-level data from annual surveys conducted by the National Bureau of Statistics and prefectural-level panel data in China. This paper shows that the effective average tax rate of private firms is the highest， and that of foreign firm is the lowest. A reduction of the effective corporate tax rate can lead to higher entry rates of domestic， private， and in particular of foreign firms. The estimation results also show that tax incentives help weaken both the negative effects of government corrupt on the entry of foreign firm and the negative effects of financial distortions on the entry of private and foreign firms. In contrast， the positive effects of tax incentives on the entry of private and foreign firms decrease with the level of infrastructure.
Key Words： Tax Incentives; Corporate Effective Average Tax Rate; Firm Entry; Poisson GMM
JEL Classification： H23,L11,C22

Abstract：Based on the background of strict interest-rate control in China， we construct an optimal pricing model for commercial banks taking non-interest income into account and prove that net interest margin and non-interest income are jointly determined， and the degree of impact depends on the ownership of the bank. We use micro data from Chinese banks during 1998—2012 and empirically test the relationship between net interest margin(NIM) and non-interest income(NII). The empirical results show that，the relationship between NIM and NII is negative for the whole sample is significantly different for banks of different ownerships. For state-owned banks， the impact of NII on NIM is insignificantly positive， while the impact of NIM on NII is negative. For joint-stock banks， the relationship between NIM and NII is insignificantly positive， while for local banks， the relationship is negative. Lastly， we propose several policy recommendations from the perspectives of bank management and supervision.
Key Words： Net Interest Margin; Non-interest Income; Interest Rate Control; Simultaneous Equation Model
JEL Classification： G21， D22， C30

Abstract：Interest rate marketization is a very important step in China‘s financial reform. However there is little research on exploring the market foundation of interest rate marketization from a micro-data perspective. Using data from a peer-to-peer lending website， this paper finds that the not-fully-marketized interest rate only can predict a small proportion of borrower’s default risk. Furthermore， the paper finds that investors are intelligent enough to identify these different default risks indicated by the same interest rate， via evaluating borrowers’ public information. This paper also finds that the risk identify ability is directly reflected in numbers of participants in completed biddings， and indirectly reflected in time required to raise these biddings. The results suggest investors in China‘s credit market have the basic ability in risk identifying， which can form the market basis of China‘s interest rate marketization.
Key Words： Not-fully-Marketized Interest Rate; Default Risk; Risk Identify; P2P Lending
JEL Classification： G11， G21， G23

Abstract：Speculation behavior of China mutual funds has raised doubts about its investment behavior and professional competence. This paper， by investigating the information seeking mechanism of mutual funds， analyzes the essence and logic behind the heterogeneous behavior above. By distinguishing firms with different informational characteristics and different level of firm information， our results show that investment funds have shown certain level of information mining ability， but there exists structural differences. The funds’ private information mining ability is only seen in the sample of large firms with better information environment and less fundamental variability. As for the small firms， while the mutual funds have sought for firm specific information， they do not exhibit focus on fundamental information， showing that they are speculating based on noise. Our results help to recognize the nature and ability of institutional investors represented by mutual funds.
Key Words：Mutual Funds; Information Mining; Fundamental Information; Private Information
JEL Classification：G11，G14，G23，G32

Abstract： The bids from institutional investors are the core of the IPO pricing process under bookbuilding mechanism. This paper studies the disagreement of institutional investors to explain Chinese IPO “Three Highs” problem in the primary market and the first-day and long-term performance in the secondary market. The results show that bids of the institutional investors have big divergence， which means great disagreement during the bidding process. The higher dispersion in the bids is， the greater overpricing in the primary market is， and the more serious “Three Highs” problem is. Meanwhile， the dispersion of bids has significant negative relationship to the initial return， which means that the disagreement of investors in the secondary market has get into IPO pricing in advance through bidding. From the perspective of long term， the higher dispersion in the bids is， the lower the return is. This study is helpful to understand the IPO market phenomena， to improve the IPO pricing mechanism， and to strengthen the protection to small investors.
Key Words：  Institutional investors‘ Bids; Disagreement; IPO “Three Highs”; Initial Return; Long-term Returns
JEL Classification：  G23， G11， M31， D03

Abstract： Base on theory of search， this paper introduces probability density function to construct a three-variety model including matching capacity， market scale and efficiency of electronic. For understanding action mechanism of electronic market， this model depicts influences that matching capacity， market scale impose on efficiency of electronic market， and relation between matching capacity and market scale. This research shows that： (1)On one hand， searching improves efficiency of electronic market by enlarging market scale and increases effective range of market competition. It embodies effect of activity; On the other hand， searching can change distribution function of transaction opportunities， and reduce unsymmetrical information so as to improve efficiency of electronic market. (2)Comparative advantage of electronic market in matching capacity will lead it to occupy efficiency space of other electronic markets. It is embodiment of crowding-out effect. (3)The optimum market scale is determined by matching capacity which influenced by negative externality of market. So the maximum efficiency of electronic market is the equilibrium between matching capacity and market scale.
Key Words： Electronic Market; Search Theory; Efficiency of Market; Negative Externality; Long Tail Market
JEL Classification： L86，D83

Abstract： The concept of happiness should be clarified both from the theoretical level and the application level. This paper discusses the definition， characteristics and determinants of happiness based on the history and development of utility theory. We find that the connotation of utility can be classified as decision utility and experienced utility. Decision utility reflects the meaning of desire of the new classical utility， while experienced utility reflects the meaning of pleasure of the classical utility. We argue that happiness can be seen as a subset of experienced utility and can be defined as the satisfaction induced by the contrast between actual outcome and acceptable outcome. This definition means that happiness may be determined by the relative changes of outcome rather than the absolute level of outcome. This can be seen as the basic feature of happiness function which can help us choosing the explanatory variables more appropriately. The policy implication is that if government wants to improve the total happiness of people， the policy design should focus on relative variables rather than absolute variables， otherwise people may be assumed to be happy.
Key Words：Decision Utility; Experienced Utility; Satisfaction; Happiness Function
JEL Classification：I31， D03， B20