Education inequality between the rural and urban areas of the People's Republic of China (PRC)—a potential bottleneck for human capital accumulation—has long been of interest to researchers and policymakers. This paper uses data from the China Family Panel Survey (CFPS) and the Rural–Urban...

This paper analyzes the problem of starting and stopping a Cox-Ingersoll-Ross (CIR) process with fixed costs. In addition, we also study a related optimal switching problem that involves an infinite sequence of starts and stops. We establish the conditions under which the starting-stopping and...