“The buffer stock theory” derived from the intertemporal utility maximization predicts that an increase in wealth will dampen the motive for precautionary savings and therefore reduce consumption’s over-sensitivity with respect to income changes. Since over the last forty years Taiwan has...

In this short paper we summarize and elaborate on a few well-known misconceptions that often occur when people conduct statistical hypothesis testing. For example, when the truthfulness of the null hypothesis is a random event and the formal hypothesis testing procedure cannot reject the null,...

We investigate how financial constraints and agency costs impact firms' investment in China. A generalized Q investment model is constructed. It implies that firms' investment depends mainly on three factors: investment opportunity which determines the optimal investment stochastic frontier,...