In this study we examined the effect of structural break points in conditional volatility on variance persistency of asymmetric GARCH models. We used Bai and Perron methodology to detect structural break points in conditional variance of daily stock returns of 7 emerging markets (4-European and...

China was steeped in the concepts and ideology of a planned economy for 30 years until reforms began in 1978. Although the country is now well on its way to becoming a market economy, its trading system remains shackled by its centrally planned past. Measuring the Costs of Protection in China...

1. The logic of the market economy and the concept of state is a major topic that is not easily addressed. Scholars have analyzed it from a variety of perspectives in both theoretical and practical terms relying on logical deduction and analogies to the world of art, along with approaches...

A characteristic of China's "gradualistic" reform is that it starts first by trying not to confront many vested interests or to undertake any fundamental, radical restructuring of the old system, but rather to develop a new system alongside (or on the "margins" of) the old system. Therefore,...

As critical piece of China’s gradualist economic transition, domestic price reform still faces major challenges. In particular, factor price, which is still tightly-controlled and not market-based, is lower than market equilibrium price. Factor price distortion not only reduces market...