We revisit the topic of national favoritism in government procurement in the context of international trade, focusing on the impact of a participation/transition cost difference between domestic and foreign firms. Our public tender model generates two kinds of equilibrium outcomes, where a...

We study equilibria in second price auctions when bidders are independently and privately informed about both their values and participation costs and their joint distributions across bidders are not necessarily identical. We show that there always exists an equilibrium in this general setting...

We study the endogenous participation problem when bidders are characterized by a twodimensional private information on valuations and participation costs in first-price auctions. Bidders participate whenever their private costs are less than or equal to the expected revenue from participating....

Purpose In the transitional process of promoting market-oriented interest rate, China is confronted with an important theoretical and practical issue: how to avoid bank runs and realize the smooth operation of the financial system. The purpose of this paper is to construct a bank-run dynamic...

For school choice problems with affirmative action, responsiveness is used as a measure of how a matching mechanism performs in terms of a certain type of affirmative action policy. We know that the Deferred Acceptance (DA) mechanism is not responsive to the priority-based affirmative action on...

China's economy underwent a steady recovery in 2021. Investment grew steadily with structural improvement. Exports and imports surged while trade surplus expanded. On the other hand, although labor market conditions improved, income distribution worsened, contributing to sluggish growth in...

The Chinese economy upheld a frail recovery in 2022 under the triple superposition of contraction of demand, disruption in supply, and weakening expectations, aggravated by unanticipated adverse shocks in the midst of global turmoil. Over the year, rising income uncertainty set off by the...

This paper develops a general framework for conducting inference on the rank of an unknown matrix \Pi_0. A defining feature of our setup is the null hypothesis of the form H_0: rank(\Pi_0)\leq r. The problem is of first order importance because the previous literature focuses on H_0':...

Individual food choices and consumption are closely relating to one's diet, nutrition, and health. Using the case of alcoholic beverages, this study extends the random-utility framework by incorporating genetic information into consumer demand models, and demonstrates the significant impact of...

This paper studies robust and optimal estimation of the slope coefficients in a partially linear instrumental variables model with nonparametric partial identification. We establish the root-n asymptotic normality of a penalized sieve minimum distance estimator of the slope coefficients. We show...