Abstract：Based on the RBC model with fiscal shocks， we studied the features of China economic fluctuations and the effects of taxation policy. The empirical results are as follows. Firstly， the RBC model with fiscal shocks is more reasonable for China economy， and fiscal expenditure shock may amplify economic fluctuation. Secondly， cutting the tax rates of capital and labor income induces economic growth and affects the household consumption in the opposite directions. The effect of labor income taxation is more obvious than capital income taxation. Thirdly， there are some asymmetric effects in the taxations of capital and labor income. Both of the rate changes in capital and labor income may strengthen or weaken the taxation effects through their nonlinear interactions.
Key Words：Real Business Cycles； Fiscal Shocks； Taxations； Welfare Cost
JEL Classification：E32， E62， H21

Abstract：This paper setups a dynamic stochastic equilibrium model by introducing two different ownerships of enterprises in the production sector to analyze Chinese structural monetary policy， and simulates the interest rate liberalization's policy effects. The paper finds that structures of monetary flow and interest rate in China， which obviously create more economic fluctuations， take more responsibility for fluctuations of private enterprises' wage and market interest rates than these of state-owned enterprises'. If China carried out interest rate liberalization reform by eliminating all discriminations of interest rate， the fluctuations of real economic variables would be obviously reduced even though the fluctuations of nominal price and money stock would increase.
Key Words：Monetary Policy；Interest-rate Liberalization；Business Cycle；
JEL Classification：E60，E61，E27

Abstract：Public administrative spending has been high for a long time， and it is the highest in the counties compared to prefectures and provinces in China. Capital flow will be equilibrium between central cities and counties in the periphery based on the theory of center and periphery in spatial economics. Return of capital in remote counties is lower than central cities. It is difficult for remote counties to win the champion for attracting capital among counties， even though they spend more productive expenditure. They will prefer to non-productive public administrative spending. We test the hypothesis based on 1938 counties sample from 2001 to 2006 and find that the geographical location disadvantage significantly promoted the growth of public administrative spending in counties， the improvement of traffic conditions weaken this effect. For the fake of reducing public administrative spending in counties， it is necessary to improve geographical location disadvantage in counties by traffic infrastructure construction. Parasitic public finance in the counties which highly relying on fiscal grant will further aggravate the effect of location disadvantage on the growth of public administrative spending in counties.
Key Words：Geographical Location； Public Administrative Spending； County Level Government； Hausman-Taylor Estimate
JEL Classification：H76， R11， H77

Abstract：In 2008， in the balanced transfer payment system， it has been set up the financial transfer payment of ecological function areas by the Chinese central government. At the same time， every province or region designed the different method of distributing public finance funds by its own condition， the ultimate goal of which was guiding the government and residents of ecological function areas to protect the ecological environment. However， there had been some differences between the purpose of system design and the ultimate goal， because the design idea， which was setting up by the central government and using to distribute the finance funds to the local ecological function areas， was for improving the ability of the government basic public service supply in ecological function areas， but there were different fund allocation methods in different province. This paper argues that the central financial transfer payment system to the local ecological function areas should be based on the compensation of the spillover ecological value. Meanwhile， it should be setting up the unified financial transfer payment system of ecological function areas over the whole country. First of all， this paper puts forward the compensation idea on the spillover ecological value， which based on different compensation path； And then， it would be measured the value of ecological service function， the value of ecological resource scarcity and the own cost of ecological value， which based on the expansion emergy analysis； Thirdly， it would be taking the empirical calculate the finance funds distribution of ecological function areas to test the method operability， which based on the case of 31 provinces in China and 129 counties in Yunnan province； Finally， it would be suggest the further development of contributing and improving this financial transfer payment system.
Key Words：Transfer Payment System in Ecological Function Areas； Spillover Ecological Value； Expansion Emergy Analysis
JEL Classification：H23, Q20

Abstract：The happiness is not only the goal of life， but the determinant of the people's behavior. Based on CHIP data， this paper investigates the impacts of happiness on individual's employment and recessive reemployment probability in China. The instrumental variables estimates indicate that it does increase individual's employment and recessive reemployment probability significantly. And it is realized by promoting individual's social capital and job search. So， the transition of Chinese economic growth mode to improve people's livelihood and happiness， can release the structural contradictions in labor market in some sense without intensifying the employment pressure.
Key Words：Happiness； Employment； Recessive Reemployment； Social Capital； Job Search
JEL Classification：D69, J20

Abstract：We adjusted the micro-data of CHIPS (2007) and estimated the income Gini coefficient， using the method adopted by China's National Bureau of Statistics. We then used bootstrap method to estimate the standard deviation of point estimation of Chinese resident's income Gini coefficient and constructed the corresponding confidence intervals. Our results show that out of the five consecutive years of decline in the income Gini coefficient， only three declines are statistically significant. It would be too soon to get the conclusion that the income Gini coefficient of China has entered the downtrend channel.
Key Words：Gini Coefficient； Interval Estimation； Bootstrap Method
JEL Classification：C15， D31， O15

Abstract：Using China Household Finance Survey (CHFS) data， this paper investigates the impacts of financial availability on Chinese households' financial market participation and portfolio choice both in the formal and informal financial market. We find that the increase in the financial availability will enable households more actively to participate in the formal financial market and increase their risky asset holdings in the formal financial market. If financial availability increases， households will also decrease their risky asset holdings in the informal financial market，which makes less households can borrow money from informal market. In conclusion， the financial availability has a positive effect on households' participation in the formal market and has a negative effect on the informal market. At last， in rural and middle-west area， financial availability has a more positive effect on the formal market.
Key Words：Financial Availability； Financial Market Participation； Household Portfolio Choice
JEL Classification：G11， G12

Abstract：In the era of elite governance， the power and social connections of CEO become the inner core capability and external resources which can determine enterprise efficiency. While we wonder what kind of impact will be produced when the two factors combine together? In this paper， we analyze the effects of CEO's power and social connections on enterprise performance， and further focus on the adjustment effects of social connections on the relationship between the power of CEO and corporate performance. We found that there is a positive correlation between the power of CEO and enterprise performance， while there is an inverted U-shaped relation between social connections of CEO and enterprise performance. Furthermore， we proved that social ties play an inverted U-shaped adjustment effect on the relationship between the power of CEO and corporate performance， which is caused by the investment expansion effects and passivation effects. This paper reveals the micro mechanism of the impact of the CEO's power and social connections on enterprise performance， and can play an important role in promoting the management capabilities and resources allocation efficiency.
Key Words：Power of CEO； Social Connections； Elite Governance； Performance
JEL Classification：G30， G38， L33

Abstract：Using a unique data of fund managers' high turnover rate in China， we examine how fund managers' career concern affects funds' investment style they control. We find that career concern does affect funds' investment style， the higher fund managers' career concern， the more conservative funds' investment style they control， this is very consistent with existing literature. We further demonstrate that it is not a simple linear relationship between fund managers' career concern and funds' investment style： Managers with high reputation rarely consider of career concern， managers with low reputation will be more aggressive to achieve high abnormal return， while managers with modest reputation will take the most conservative investment style to avoid investment loss. Considering the investment strategy， we find that manager will select stocks with higher beta value and lower funds involve level for aggressive investment style. On the contrary， they will select lower beta and higher funds involve level stocks for conservative investment style.
Key Words：Fund Manager； Reputation； Career Concern； Investment Style
JEL Classification：G23， G14

Abstract：In this paper， we use high-tech industry companies listed in Shanghai and Shenzhen Stock Exchange from 2006—2012 as research sample， considering one important external uncertainty factor which is corporate litigation risk. We use litigation times and litigation amount to measure it. We discuss how financing litigation and product litigation affect on innovation input. What's more， we further examine the effects of judicial local protectionism between corporate litigation risk and enterprise innovation input. This study finds： (1) Financing litigation has negative inhibitory effect on enterprise innovation input. In contrast， product litigation has a positive incentive effect on firm innovation input； (2) Overall， the judicial local protectionism disturbs outcome of corporate litigations and further restrain the innovation input. Specifically， judicial local protectionism will not only greatly intensify the inhibitory effect which caused by financing litigation on defendant enterprise， but also significantly weaken the incentive effect which caused by product litigation on respondent enterprises innovation input. As a conclusion， this paper reveals the uncertainty of external environment influence mechanism on enterprise innovation. From the national perspective， we provide empirical evidences for promoting Chinas nationalization judicial reform and realize judicial justice. Last but not least， it gives support for driving an innovationoriented country.
Key Words：Litigation Risk； Judicial Local Protectionism； Innovation
JEL Classification：G34， G38， K42

Abstract：Using residential electricity consumption and household survey data we analyze residential electricity demand under time-of-use pricing cum increasing block pricing (IBP) based on the two-error discrete/continuous choice model. We first convert the mixed pricing structure into a new IBP system， then justify the specification of an DCC model by showing the aggregating behavior around kink points， and finally， estimate the two-error DCC model. Our conclusion is that IBP increases price elasticity significantly with middle-low income households having higher price elasticity and middlehigh income households have higher income elasticity and bigger heterogeneity error. Our results contribute to a systematic assessment of IBP implementation in electricity and other sectors as well.
Key Words：Residential Electricity Demand； Increasing Block Pricing； Peak Load Pricing； Discrete/Continuous Choice Model； Two-Error Model
JEL Classification：L16， L63， C36

Abstract：Under the irreversible trend of that the agricultural land management scale has been centralizing， it does not make sense of still being caught in the argument of“inverse relationship” or“increasing returns to scale”. It has become a basic consensus of future top-level design to respect the wishes of farmers and to achieve agricultural concentration gradually with the help of market forces. Therefore， from the micro perspective， this paper will answer the question of“What is the proper land management scale really needed by farmers?” with the help of the rural household survey panel data of 2004，2005，2007，2009， and 2012 conducted by National Bureau of Statistics， and thus gives the decision mapping for agricultural land management scale from the perspective of farmers. Such kind of decision mapping has never been seen in relevant literatures， but it has a strong reference value for future macroeconomic policy-making.
Key Words：Land Management Scale； Decision Mapping； Inverse Relationship； Returns to Scale
JEL Classification：D24， Q15， R15

Abstract：With economic situation at home and abroad deteriorating， China's export is slowing down. On this background， how China adjusts its export strategy to maintain benefit from export becomes an important issue. This paper tries to answer this question through investigating how export affect productivity from perspective of trade induced learning effect. Focusing on the matched information of highly disaggregated product-level trade data and firm-level production data from 2000 to 2006 in China， we construct a new measure of firm-specific demand shock of exporters， based on， the GDP growth rates of exporter's destination countries as an instrument variable for firm exports. We find that a one percentage point expansion in exports raises firm total factor productivity (Olley-Pakes method) by approximately 0.224 percentage point on average. Moreover， we find that exporting to high-income countries， more processing exporting and scope expansion about variety contribute to the productivity growth. Thus， China can adjust its strategy from aspects of destination distribution， export mode and export goods diversity.
Key Words：Export； Trade-induced Learning； Productivity； Instrument Variable
JEL Classification：D24， F14， L10