The literature has established two kinds of entry bias in imperfectly competitive markets. First, free entry may lead to excessive entry relative to the socially optimal level. Second, free entry may lead to the wrong technology (type of firm) in the market compared to the socially optimal...

Consumers need not evaluate all available product information before making a purchase. This may arise because shopping environments prevent a full evaluation (e.g. online). We develop a model of simultaneous search in which consumers have limited ability in product evaluation in order to study...

English Abstract: The entrepreneurs try their best to obtain all sorts of sparse resources from the governments to develop their firms, thus they positively build all kinds of relations with the governments. However, owning the weak political connections the entrepreneur can only access to these...

English Abstract: Slack can prevent the substantive loss of enterprise suffering from the uncertainty, but it leads to inefficiency because of the large carrying cost. The ideal status is that the enterprise carries less slack and has the competency of response to the unexpected circumstances....

Using pooled data from fifteen industrial and developing countries from 1980 to 1995, this paper examines the macroeconomic determinants of stock market development, particularly market capitalization. The paper finds that: (1) real income, saving rate, financial intermediary development, and...

This paper examines the macroeconomic effects of government spending shocks in Canada for the period of 1949 - 2012. We use the narrative record, mostly the budget speech, to identify the size, timing, and principal motivation for all planned major government spending changes. To achieve...

This article provides a new framework to evaluate the status of Renminbi internationalization. It proposes that the trading patterns of a currency in global foreign exchange market embody the currency's position in the international monetary system. Based on foreign exchange trading data...

In this paper, we re-investigate the effects of oil price and its uncertainty on China's macroeconomic activities using a monthly generalized VAR model with stochastic volatility in mean, named interactive VAR-SV-in-mean model, which allows for interactions amongst variables' levels and...