In the transition from a command to a market economy, macroeconomic stabilization poses a grave problem facing the reform governments. A distinct feature of China's economic fluctuations in the post-1979 period has been its "soft-constraint competition." A two-region game theoretical model is...

This paper characterizes demand evolution in the steady state under common inventory policies in a single-location stochastic inventory system. Our results show that downstream demand nonstrictly second-degree stochastically dominates upstream orders and the bullwhip effect occurs. We provide...

This study characterizes order processes under (R,nQ) inventory policies. We show first that the order distribution at an installation is stationary when it uses an (R,nQ) control policy, for any arbitrary stationary distribution of customer demand. We then quantify variance amplification and...

Estimations of nonlinear panel models that include individual specific fixed effects are complicated by the incidental parameters problem, that is, the asymptotic bias in the estimation of typical fixed effects panel models generally results in inconsistent estimates. In this paper, I...

In explaining dramatic changes in Chinese household savings and money demand behaviour in the reform period, previous studies proposed and tested three different hypotheses. However, no effort has been made to distinguish quantitatively between forced and voluntary savings in terms of their...

Dissatisfied with little evidence provided on various hypotheses concerning the revenue-expenditure relation in China, this paper is an empirical endeavour to fill the gap through a battery of econometric tests for causality based on vector error correction and vector autoregression models. A...

Recent theoretical models and empirical analyses argue that mortgage market activity creates information and lowers the costs of underwriting mortgages. We re-examine this question using models that control for neighborhood-lender fixed effects and address the potential endogeneity of market...

This paper studies the inventory behavior of autonomous and self-serving firms in a decentralized retailer-manufacturer serial supply chain. We first analytically characterize the optimal inventory policies for each firm both with and without information sharing, revealing an inherent simple...