Abstract:This paper analyzes the effect of fiscal expenditure on economic growth and social welfare through both theoretical and empirical studies. In the theoretical study,the paper derives the optimal fiscal production expenditures to achieve the objectives of economic growth maximization and social welfare maximization,respectively,by establishing an endogenous economic model with government fiscal consumption expenditure and production expenditure,and analyzes the different optimal fiscal production expenditures,as well as the reasons for the differences,with the two objectives respectively. The empirical findings show that the optimal fiscal production expenditure for social welfare maximization is smaller than that for economic growth maximization in all of the three economic belts of China from 2004 to 2012. Moreover,the government fiscal production expenditure has been insufficient since it was below the optimal amounts with either of the objectives from 2004 to 2008; but it has been sufficient or even exceeded the optimal amounts from 2009 to 2012,hence increasing production expenditures will harm the economic growth and social welfare,especially in the East and Middle economic belts of China. Accordingly,the government needs to correctly assess the situation and optimize fiscal expenditures to maximize economic growth and social welfare in the new normal state of China's economy.

Abstract:Due to commercial tradition and the short history of antitrust law,the phenomenon that manufactures control the retailing price is very common in Chinese retail market. Increasing buyer power makes it possible for retailers to contend the pricing right with manufactures,which leads to a unique form of buyer power in China. Based on pricing right contending between retailers and manufactures,this paper studies the mechanism and economic effect of buyer power. First,this paper analyzes the motivation for retailers to contend the pricing right when the demand is certain,and finds that by contending the pricing right with manufactures the retailer can obtain “first-mover advantage of vertical pricing”. Thus,the wholesale price will decrease and the marginal profit of retailers will increase. Further,the paper extends the model by introducing uncertain market demand. It is found that the obtaining of the pricing right will transfer market risks from the retailer to the manufacture if the retailer is risk averse,giving the retailer a “profit effect of risk transfer”. Further,obtaining the pricing right can also give the retailer a“profit effect of flexibly pricing”by helping the retailer to make a more flexible price decision and to gain more profits if the retailer can predict market demand. The welfare study finds that the economic effect of buyer power in the form of pricing right contending depends on the market demand characteristics and risk attitudes of retailers. The increasing of buyer power does not always benefit consumers. Under specific conditions,the final price and consumer welfare would decrease with buyer power.Based on above conclusion,this paper also discusses the regulation of buyer power.

Abstract:At present,researchers and managers are concerned with the performance of the seven carbontrading pilots in China. Hence,this paper theoretically analyzes their performances from the initial allocation viewpoint of carbon emission rights. It is found that there exists a clustering effect of carbon trading in the pilots. The underlying reason for it is because of the mismatch of permits and the consequent adverse selection of enterprises. To eliminate the adverse selection from mechanism design,the paper introduces auctioning into the carbon-trading market. Moreover,based on China's actual conditions,an asymmetric auction model of rights is developed by constructing the abatement investment return index and defining the socially optimal rights allocation. In our model,enterprises' asymmetric equilibrium bidding strategies and their abatement investment decision before the auction are investigated,respectively. Then,the effects of the enterprise ownership differences on abatement investment and allocation are examined. Finally,the effectiveness regarding the low-carbon government subsidy is discussed and associated options are suggested in order to improve China's carbon-trading market.

Abstract:With the advance of RMB internationalization,the scale of RMB offshore market has been expanding. It is important to study the linkage mechanism and interaction between the offshore and onshore market exchange rates to explore the RMB pricing power and risk management in the RMB internationalizationprocess.This paper employ the VAR-GARCH( 1,1)-BEKK model to analyze the impact transmission effect between the onshore/offshore spot and forward RMB exchange rates,especially the mean spillover effect and volatility spillover effect. It finds that: 1) The mean spillover effects and volatility spillover effects in the two markets are significant,but the onshore market has a bigger impact on the offshore market,while the offshore market forward exchange rate leads the onshore forward exchange rate; 2) The impact of the offshore market on the onshore market after the “8. 11 exchange rate reform”has increased,and the linkage between the two markets has become more significant; 3) The impact of the US dollar on both onshore and offshore RMB exchange rates is very significant,but even after control the US dollar exchange rate,the exchange rate spillover effect between onshore and offshore RMB exchange markets still exists.

Abstract:The existing literature on portfolio optimization generally assumes that investors are independent,and the returns of underlying assets are not correlated among different periods. In reality,however,investors often relate to each other,and the return series always have some dependencies among different time periods.Under the framework of the multi-period portfolio optimization and Nash equilibrium theories,using the relative performance of investors to describe their game behaviors,a multi-period portfolio game model is constructed which maximizes the expected utility of the relative terminal wealth of each investor. With the assumption of correlated return series,the analytical solutions of Nash equilibrium investment strategy and the corresponding value function are derived,and the relationship between the strategies derived from Nash equilibrium and the traditional ones is described. Finally,a simulation analysis of the two investment strategies,by using cumulative empirical distribution function and Sharpe index to compare the performance of the two strategies' is conducted,and how Nash equilibrium investment strategies change with the different coefficients of the investors' response sensitivity is analyzed. Results show that,when considering the relative performance of competitors,investors of Nash equilibrium,with respect to traditional investors,are more willing to tolerate higher risks to pursue higher profits,and the greater the response sensitivity coefficients,the higher risk they prefer.

Abstract:This paper analyzes entrepreneurs' exaggerating of product quality and the related precautions by using theoretical models. Theoretical models for the initiation stage and selling stage of the pre-order crowdfunding are constructed. By solving the optimization problem of entrepreneurs,the optimal crowdfunding price and product quality promised to investors are given,and the incentives for entrep,reneurs to exaggerate the product quality are analyzed. On this basis,this paper designs precautions consisting of margins and credit constraints,and analyzes their preventive effects on entrepreneurs' exaggerating product quality. The results show that: Entrepreneurs exaggerate the product quality in order to make crowdfunding successful and maximize theirreturns without precautions. Crowdfunding platforms' collecting margins can prevent entrepreneurs from exaggerating product quality,but with limited preventive effect; Adopting credit constraints can make up for the shortcomings of margins and improve the preventive effects. Finally,a numerical analysis elaborates the relevant results obtained by the theoretical model.

Abstract:Based on analysts' microblogs,this paper examines whether social media improve the efficiency of information dissemination of analysts. Our results show that,compared with analysts without microblogs,microblog-analysts can disseminate information more efficiently after opening microblogs. Once analysts stop issuing new blogs,this effect disappears. In addition,the more attention the analysts' microblogs attract,the higher information dissemination efficiency. Further analyses show that,the above effects only exist for star analysts and companies with higher institutional ownership,implying that star analysts and institutional investors are the main components of information supply and demand sides. Our paper provides evidence for studying the role of analysts' social media in capital markets.