Some recent empirical works indicate that investor performance and market patterns are primarily information driven instead of a behavioral phenomenon. However, Grossman and Stiglitz information theory and its variations offer little guidance in identifying informed investors and in...

We present a unified analytical theory of production and capital structure of firms. It is extended from an analytical theory of production, whose main result is an analytical formula of variable cost of production as a function of fixed cost and uncertainty. Problems on capital structure can be...

I present a unified theoretical framework that attributes output collapse to price liberalization and decentralization of the formerly integrated monopolistic industrial structure in the former Soviet bloc, and output expansion in China to marginal marketization and intramarginal regulation. In...

The effectiveness of China's incremental industrial reform between 1980--89 is empirically investigated using a panel data set of 769 state enterprises from 36 2--digit industries. I derive and apply a method that measures marginal products of factors, changes in total factor productivity (TFP),...