In this paper, we investigate how investors who face both equity risk and credit risk would optimally allocate their financial wealth in a dynamic continuous-time setup. We model credit risk through the defaultable zero-coupon bond and solve the dynamics of its price after pricing it. Using...

This paper investigates how investors who face both market risk (interest rate risk) and credit risk in addition to equity risk would optimally allocate their financial wealth in a dynamic, no arbitrage, continuous-time setup. I model credit risk through a defaultable zero-coupon bond and solve...

Since the beginning of this century, China’s annual GDP growth is over 9%. This growth is fueled by large increases in energy consumption, led by a coal-dominated energy structure, and associated with higher sulfur dioxide emissions and industry dust. In 2008, China accounted for over 17% of...

Based on the variance decomposition method of Eggers and Ioannides, the sources of long-term stability of the Chinese economy since the mid‐1990s are estimated and the potential influence of structural optimization is predicted. Results show that: (i) the contribution of industrial structural...

The Chinese government has been pursuing economic growth under the guidance of "growth is a hard principle". In the context of the Chinese political and economic governance system, local governments have employed the overtaking strategy (placing primary emphasis on the development of capital and...

The Chinese government has been pursuing economic growth under the guidance of “growth is a hard principle”. Regional governments have employed the overtaking strategy (placing primary emphasis on the development of capital and technology-intensive industries) and the real estate development...

Recent studies have found unmeasured intangible capital to be large and important. In this paper we observe that by nature intangible capital is also very different form physical capital. We find it plausible to argue that the accumulation process for intangible capital differs significantly...

Recent studies have found unmeasured intangible capital to be large and important. In this paper we observe that by nature intangible capital is also very different from physical capital. We find it plausible to argue that the accumulation process for intangible capital differs significantly...