Using a sample of equity funds in China, we explore for the first time mutual funds that impose discretionary inflow restrictions (gates) on investors. Contrary to managers’ claim, we find no clear evidence that inflow gates protect investor interests. Despite their superior past performance,...

To value non-transferable non-hedgeable (NTNH) contingent claims and price executive stock options (ESOs), we use a replication argument to translate portfolios with NTNH derivatives into portfolios of primary assets (only) with stochastic portfolio constraints. By identifying stochastic...

Based on micro-level student data from one Chinese academic institution, we study the validity of the national college entrance exam from the perspective of student performance in college and employment prospects after graduation. We find that the current college entrance exam could reflect the...

Automatic Generation Control (AGC) and Automatic Voltage Control (AVC) are key approaches to frequency and voltage regulation in power systems. However, based on the assumption of decoupling of active and reactive power control, the existing AGC and AVC systems work independently without any...

In this paper, concepts and methods of hybrid control systems are adopted to establish a hierarchical dynamic automatic voltage control (HD-AVC) system, realizing the dynamic voltage stability of power grids. An HD-AVC system model consisting of three layers is built based on the hybrid control...

This paper proposes an insurance solution for the overtreatment problem. We show that a patient can be encouraged to seek a second opinion more often if the health insurance covers the income risk associated with this choice. The resulting insurance policy features a coinsurance rate that is...