The ARCH model shares with the related literature on risk and return one common thing: the rational-expectation paradigm. In particularly, market prices should reflect investors' rational forecasts, based on the best available information. When new information arrives, the market's expectations...

Ambiguous property rights may allow a local entrepreneur to get the services provided by local bureaucrats at lower costs compared with strong property rights. However, once local bureaucrats learn the firm's unobservable income, they likely encroach upon the firm. In an ongoing relationship,...

We reconsider the theory of ambiguous property rights in China. In a static game context, this ownership allocation is good because a local entrepreneur can probably get services provided by local bureaucrats at lower costs than a private owner; but bad because once knowing the firm’s...