This paper uses a model of endogenous theft and endogenous network division of labour to formalize some of the main principles of the economics of the state and to explore related issues concerning why new constitutional rules emerge and evolve. The model suggests that fiscal competition between...

Reducing the proportion of state-owned shares (SOSs) in China is a complicated undertaking, related to several issues on the reform agenda such as the strategic reform of the national economy, industrial policies, the sustainable development of listed companies, the evolution of the ownership...

Using a price vector and a conjecture about a population's activities, this paper suggests that a mixed Nash-Walrasian equilibrium (NWE) occurs if, when every individual maximizes her utility under her conjecture, the trading markets and the theft 'markets' are all cleared. Thus, in our model...

We discuss the pricing of a superior good based on its 'signalling value'. Our model and analysis offer a different explanation of why in China and some other Asian countries the prices of luxury goods are extremely expensive when they are first marketed, then fall dramatically and...

This paper examines the degree of financial integration that exists in East Asian equity markets using the International Capital Asset Pricing Model methodology. We employ three market portfolios to test for integration: the weighted average equity index of all sample countries, the Japanese...

In this paper we consider the problem of specialization and trade for large economies with a continuum of ex ante identical individuals and with a finite number of goods. Different from the classical treatment, we adopt a game theoretical approach. Therefore in our models the prices of traded...

We employ a general macroeconomic analysis to describe the economic growth and performance of the Special Economic Zone (SEZ). It is shown that not only does foreign investment make a significant contribution to the economic growth of the Zone, but also, the rapid response of foreign investment...

In this paper we discuss finite economies with the presence of transaction costs and with decreasing, constant or increasing returns. In general such an economy may have no general equilibrium existence and may even have an empty core. We analyse the trading networks of such an economy,...

In this paper, the authors compare the behaviours of a sales revenue maximizer with that of a profit maximizer in their response to an increase of the per unit production cost or a per unit tax being imposed. A common mistake in currently used textbooks is pointed out, and a new proposition is...

Using a data set based on a cross-sectional firm level survey conducted by the World Bank in year 2001, in this paper we investigate the major sources of production improvement and innovation growth of Chinese enterprises from ten major industries and five major cities. In terms of production...