Table of Content

15 November 2012, Volume 0 Issue 11

Previous Issue    Next Issue

Policy Reform, Public Expenditure and Household Consumption: A Quantile Regression Study Based on Provincial Panel Data

LI Guang-yong

2012, 0(11):  1589. 

Asbtract ( 169 )  

Related Articles | Metrics

Taking policy reforms around the sectors of education, health care and housing around 1998 as a dividing point, this paper analyzes the impact of public expenditure on household consumption with provincial panel data before and after the policy reforms by adopting the technique of quantile regression. The results show that educational, medical and administrative expenses and public investment expenditures have significantly different effects on household consumptions before and after the reforms whether from directions or changing trends. After the reforms, educational and medical expenditures are playing a role of restraining household consumptions, and this role is much obvious than before. The administrative expenses could restrain the household consumptions during some years before the reforms, while after the reforms they are promoting those consumptions to a larger degree. The public investment expenses have been playing a role of promoting household expenditures before and after the reforms, but the effects are weakening, the volatility after the reforms is much bigger than before.

The Growth Effect of the “Four Trillion” Investment: An Application of the “Counterfactual” Method

WEI Meng-xing

2012, 0(11):  1590. 

Asbtract ( 167 )  

Related Articles | Metrics

This paper put forwards a new method within the “counterfactual” framework to estimate the effects of the macroeconomic policy when taking into account the existing difficulties of constructing “counter facts” by using macro data; and as an application, it gives an ex post estimation of the economic growth effect of the “four trillion” investment implemented by Chinese government since the third quarter of 2008. The result of the study shows that the investment contributed to the real GDP growth by 0.93 percentage in 2009, while the effect reversed quickly in 2010. It also indicates that the “four trillion” investment has indeed played a considerable role in preventing China’s economy from slipping into recession during the global financial crisis, but it is not necessary to ensure the growth goal of eight percentage that once launched in 2009, which will not affect the economy significantly in the long run.

Public Budget Reform in the Field of Sociology: An Analysis from the Perspective of Promotion of Rights by Associations and Power Competition and Cooperation

CHENG Guo-qin

2012, 0(11):  1591. 

Asbtract ( 147 )  

Related Articles | Metrics

During the process of public budget reform, the dynamic role of the associations cannot be ignored. The popularity of associations can awaken and nurture the public spirit of the people and consolidate the foundation of the masses for the public budget reform. The non-government nature and affinity of associations have enhanced the enthusiasm and effectiveness of the public participation in the budgeting, and protection of the rights has become the orientation of the budget reform. The specialty and neutrality of associations can oversee and restrain the exercise of power, which would improve the scientificalness and the credibility of the public budget. Therefore, to pay full attention to the active role of associations in the public budget reform will become a breakthrough in the current budget reform.

Soft Budget Constraint, Three-Side Game Playing and Regulatory Governance of Public Projects

HOU Xiao-xian

2012, 0(11):  1592. 

Asbtract ( 140 )  

Related Articles | Metrics

The impulse of the government’s investment is the intrinsic motivation to break the budget constraints; the current administrative system contributes to the preferences of over investment of Chinese government into public projects. Reasonable regulatory governance over the public projects can not only give full play to the competitive advantage but also form a pattern of multiple checks and balances. Although China has gradually established a “trinity” mechanism to regulate public projects, the effect of it is by no means ideal. By taking such measures as to set up a public project regulatory governance mode based on cooperation contracts, to improve the coordination and communication mechanisms between the various stakeholders, and to achieve reasonable risk-sharing and amicable settlement of contradictions, the problem of maximum regulation of the soft budget constraints over public project investment can be solved.

Reflection on the Root of European Debt Crisis: An Analysis from the Perspective of International Monetary System

WANG Han-ru

2012, 0(11):  1593. 

Asbtract ( 151 )  

Related Articles | Metrics

Based on the theoretical frameworks of international economics and new political economics, this study has found that the root of European debt crisis lies in the democratic overload of both European countries and the United States. The inevitable result of European democratic overload is inefficiency of economic operation and enormous fiscal deficit. American democratic overload has given birth to the current disequilibrium of the international monetary system which is dollars-led and Euro-followed, and finally caused the European debt crisis by magnifying the structural problems of European economies through the two mechanics of international trade and international finance.

An Analysis of the Effectiveness of FED’s Large-Scale Asset Purchases

YAN Chun-xiao

2012, 0(11):  1594. 

Asbtract ( 131 )  

Related Articles | Metrics

As one of the major means of unconventional monetary policy, large-scale asset purchases are intended to lower the long-term interest rates, maintain the stability of the financial markets and stimulate economic activities. Based on the VAR model with the monthly data from January 2003 to February 2012, this empirical test shows that large-scale asset purchases can significantly lower long-term interest rates, but compared to purchase of common treasury bonds, its role is not significant; large-scale asset purchases may raise the inflation expectation, ease the deflation pressure, and stabilize the price level. Meanwhile it can exert certain positive impact on output, but it is rather weak and its role to stimulate the economic recovery is also limited. The contribution of long-term interest rates to the changes of inflation gap and output gap has increased significantly after the large-scale asset purchases, which indicates that the monetary policy can run more smoothly from the financial markets to the real economy.

A Study of the Influence of Product Price Information on Compromise Effects in Online Shopping

LI Dong-jin

2012, 0(11):  1595. 

Asbtract ( 177 )  

Related Articles | Metrics

In online shopping, product price information can exert a strong impact on the purchasing decision of consumers. Compromise context with unique changing dimension of “price” can be realized as a result of the specialty of online shopping. Compromise effect triggered by price information would not always occur; it depends on the pattern of presentation of price information, consumers’ perceived price-quality relationship and the existence of brand. In online shopping, if there are two alternatives of same-description with different prices in the original choice set, compromise effect will happen when another alternative of same-description but higher-price goes into the choice set. However, if a third lower-price alternative is added, compromise effect will not occur only if the choices are made by consumers with higher level of perceived price-quality relationship. Moreover, when the product is presented with brand (without brand), compromise effect will be restrained, because the existence of brand can ensure the quality of the product.

A Study of Customer Perceived Value Driven by Marketing Strategy

ZHENG Wen-qing

2012, 0(11):  1596. 

Asbtract ( 185 )  

Related Articles | Metrics

Taking the residential furniture industry as an example, this study constructs a model of customer perceived value driven by business marketing strategy. Then by applying the structural equation model, it empirically studies the impact of marketing strategy on customer perceived value from the perspective of customer perception. The results show that among marketing strategies such elements as style design, product/service quality, price, advertising expenditures and price promotions all have significant effects on customer perceived value. Furthermore, this study confirms the driving role of quality, price and service. While at the same time, it verifies the driving role of advertising expenditures and price promotions over the customer perceived value. Therefore, this study can offer significant reference for enterprises to improve customer perceived value.

The Impact of RMB Real Exchange Rate Volatility and Exchange Rate Misalignment on China’s Manufacturing Export

LI La-sheng

2012, 0(11):  1597. 

Asbtract ( 171 )  

Related Articles | Metrics

Based on the quarterly data from 1995 to 2011, this paper firstly estimates RMB real exchange rate volatility by employing the GARCH model. Then based on the behavior equilibrium exchange rate theory, it measures the degree of RMB real exchange rate misalignment. On the basis of that, it studies the impact of volatility and misalignment of RMB real exchange rate on the manufacturing export. The results show that whether in the long-term or short-term, the volatility and misalignment of RMB real exchange rate have both produced negative influence on the export commodities of different kinds, but the effect varies depending on the different features of the commodities. The different commodities for export all have a dynamic mechanism of self-correction in the short term. The monetary authorities should further reduce the negative impact of the volatility and misalignment of exchange rate on the manufacturing industry and other real economy while paying attention to the value level of RMB real exchange rate.

On the Relationship between RMB Real Effective Exchange Rate and Foreign Trade Position: An Empirical Analysis Based on the Trade between China and 5 ASEAN Countries

LIU Yuan

2012, 0(11):  1598. 

Asbtract ( 130 )  

Related Articles | Metrics

ASEAN has surpassed Japan to be the third largest trade partner of China, occupying an important position in China’s foreign trade. By applying the co-integration method and making use of the quarterly data, this paper conducts an empirical analysis on the relationship between the trade balances of China and 5 ASEAN countries, RMB real effective exchange rate, the real GDP of the 5 ASEAN countries, and the real GDP of China. The results show that there exists a long term equilibrium relationship between the four variables. There is a causal relationship between RMB real effective exchange rate and the trade balances of China and the 5 ASEAN countries. There exists a “reverse J-curve effect” between the appreciation of RMB real effective exchange rate and the trade between China and the 5 ASEAN countries, namely, the appreciation of RMB can improve the trade balance in short term. Therefore, the bilateral trade balance of China and the 5 ASEAN countries can be adjusted through changing RMB real effective exchange rates.

Technical Improvement of Governmental Accounting in the Context of Public Crisis: Based on Event Accounting

LIU Fu-dong

2012, 0(11):  1599. 

Asbtract ( 151 )  

Related Articles | Metrics

The occurrence of public crisis would trigger the explosion of resource scarcity within the limited space and time, which can result in chaos of public order and malfunction of market mechanism. When the crisis becomes serious, the government may dominate the public crisis management, so as to perform its public accountability in the special situation. As one of the important means of relieving government’s public accountability, governmental accounting should reflect and supervise the resource flow in the handling of public crisis. The application of the traditional accounting of value approach may be faced with some difficulties under the crisis conditions, which can be solved by introducing the event accounting for partial improvement. According to the features of public crisis, governmental accounting should pay attention to the changing features of the accounting objects, establish the integration pattern of accounting information based on events, trace and reflect the resource flow process under the crisis, coordinate the methods of handling government financial reports, and comprehensively apply all kinds of techniques to improve the decision quality of government under crisis.

Intergenerational Equity, Fiscal Sustainable Development and Governmental Accounting Reform

LIU Jun

2012, 0(11):  1600. 

Asbtract ( 130 )  

Related Articles | Metrics

Intergenerational equity and fiscal sustainable development have very important ethical connotations, but the current budget accounting has some defects in reflecting intergenerational equity and fiscal sustainable development. Therefore, in order to achieve the objectives of governmental accounting reform, we have to start from correction of the angle of intergenerational externalities, introduce the asset/liability view and the accrual system, reform the government debt and pension accounting system, compile intergenerational report, provide the relative information about intergenerational equity and fiscal sustainable development, and improve the supporting systems of laws and regulations.