DOCSLIB.ORG

Public Policy and Economic Behavior: China and the World Amidst a Global Pandemic

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text

Load more

Public Policy and Economic Behavior: China and the World amidst a Global Pandemic The Chinese Economists Society 2021 Annual Conference June 18-20, 2021 Zoom.us Conference Organizing Committee Li Qi (Agnes Scott College), Co-Chair Jianhua Zhang (Huazhong University of Science and Technology), Co-Chair Guodong Gao, University of Maryland Yang Jiao, Young Harris College Xin Li, University of Arkansas Huan Xie, Concordia University Jie Wei, Huazhong University of Science and Technology Lijia Wei, Wuhan University Xueqing Yan, Georgia Tech Bochen Zhu, Wuhan University Tong Ru, University of Pittsburgh Student Volunteers (Huazhong University of Science and Technology） Xiaoyu Cai, Yuanqiang Cai, Yuanyuan Huang, Wenyi Li, Xingxing Liu, Yao Lin, Xinyue Ru, Xiaqin Song, Jinping Wang, Mengge Wei, Shuangshuang Wu, Rong Xie, Ruihan Xu, Bowen Yin, Dan Zhou. 2 Keynote Speakers Colin Camerer Robert Kirby Professor of Behavioral Economics at CalTech; T&C Chen Center for Social and Decision Neuroscience Leadership Chair; T&C Chen Center for Social and Decision Neuroscience Director. Yan Chen Daniel Kahneman Collegiate Professor in the School of Information, the University of Michigan; 2019 Carolyn Shaw Bell Award Winner. David Cutler The Otto Eckstein Professor of Applied Economics at Department of Economics and Kennedy School of Government, Harvard University. Stefano DellaVigna Daniel E. Koshland, Sr. Distinguished Professor of Economics and Professor of Business Administration, University of California at Berkeley; Co-editor, American Economic Review; Co-director of the Berkeley Initiative for Behavioral Economics and Finance. 3 Matthew O. Jackson William D. Eberle Professor of Economics at Stanford University; Winner of the Jean-Jacques Laffont Prize, Toulouse School of Economics 2020; President of the Game Theory Society, 2020-2022. Gordon Guoen Liu Peking University BOYA Distinguished Professor of Economics; Dean of PKU Institute for Global Health and Development; President (2005-2006) of the Chinese Economists Society; Associate editor, Health Economics. Emi Nakamura Chancellor’s Professor of Economics, University of California at Berkeley; Co-editor, American Economic Review; 2019 John Bates Clark Medal Winner; 2014 Elaine Bennett Research Prize. Dan Silverman Rondthaler Family Professor, Department of Economics, Arizona State University; Co-editor of American Economic Journal – Economic Policy. 4 The Chinese Economists Society 2021 Annual Conference June 18-20, 2021 [This schedule follows US Eastern Time, 12 hours behind Beijing Time] Preliminary Schedule (subject to change) Registered conference participants and presenters will receive Zoom links and the information on parallel sessions soon June 18 (Friday) US Eastern Time 8:00 – 8:15 PM Opening ceremony 8:20 – 9:00 PM Keynote speech I Colin Camerer (CalTech) 9:10 – 10:10 PM Keynote speech II Round Table David Cutler (Harvard University) and Guoen Liu (Peking University) 10:20 PM – 12:00 AM Parallel sessions 1 June 19 (Saturday) US Eastern Time 8:00 – 8:20 AM CES Awards Gregory Chow Best Paper Award CES Best Student Paper Awards Gregory Chow Teaching Awards 8:30 – 9:20 AM Keynote speech III Matthew Jackson (Stanford University) 9:30 – 11:10 AM Parallel sessions 2 8:00 PM – 9:00 PM Meet the editors Stefano DellaVigna (Coeditor, American Economic Review) Emi Nakamura (Coeditor, American Economic Review) Dan Silverman (Coeditor, American Economic Journal–Economic Policy) 9:10 – 9:50 PM Professional Development Yan Chen (University of Michigan) Li Qi （Agnes Scott College） 10:00 – 11:40 PM Parallel sessions 3 June 20 (Sunday) US Eastern Time 8:00 – 9:40 AM Parallel sessions 4 9:50 – 11:30 AM Parallel sessions 5 11:40 AM – 12:00 PM Closing ceremony 5 The Chinese Economists Society The Chinese Economists Society (CES) is a non-profit academic organization registered in the United States. The CES strives to promote scholarly exchanges among members and contribute to the advancement and dissemination of economics and management sciences in China. Over the years more than 3000 individuals have joined the CES from academia, research institutions, and other public or private organizations throughout North America, Asia, Europe, and other regions of the world. CES members are in leadership positions in government agencies, universities, research institutes, multinational firms, and international organizations including the People’s Bank of China, the World Bank, and IMF. The CES is considered the most influential group that bridges academic exchanges in economics and management sciences between North America and China. To promote scholarly exchanges among its members, the Society holds annual conferences, with its first conference held in Princeton, NJ in 1985. In order to promote market-based economic reforms in China, the Society has organized its Annual Conference in China since 1993, often jointly hosted with a Chinese university. The CES conferences have been widely attended by internationally renowned economists, senior government officials, and business leaders. The Society also organizes themed North America conferences. The CES conferences have had profound policy impacts on China’s market-oriented transition and reforms as well as economic development strategy. In 1989, the CES launched an English-language journal China Economic Review (CER), which in just a few years achieved worldwide circulation and became an influential academic periodical on China’s economy. The CES became a member of the Allied Social Sciences Association (ASSA) in 1992 and has sponsored independent and joint sessions with other associations at annual ASSA meetings since then. The CES is committed to serving its members and promoting the scholarly exchange between academic and research communities in North America and in China. CES Institutional Members, 2020-2021 National School of Development, Peking University School of Economics, Henan University Agnes Scott College School of Economics, Dongbei University of Finance and Economics Institute for Advanced Economic Research, Dongbei University of Finance and Economics International School of Business Finance, Sun Yat-sen University Center for Experimental Economics in Education, Shaanxi Normal University Business School, Guangxi University South China University of Technology School of Advanced Agricultural Sciences, Peking University 6 China Center for Agricultural Policy, Peking University Shanghai University Huazhong University of Science and Technology School of Economics, Shandong Technology and Business University 7 The Chinese Economists Society (CES) Officers (2020-2021) President (2020-2021) Li Qi, Agnes Scott College President-Elect Guodong Gao, University of Maryland Vice President Jianhua Zhang, Huazhong University of Science and Technology Board of Directors Yang Jiao, Young Harris College Xin Li, University of Arkansas Huan Xie, Concordia University Lijia Wei, Wuhan University Xueqing Yan, Georgia Tech Executive Director Shuming Bao, China Data Institute Academic Publications Council Jinlan Ni, Chair, University of Washington, Tacoma Orn Bodvarsson, Westminster College Li Gan, Texas A&M and SWUFE Ding Lu, ShanghaiTech University Wing Thye Woo, UC Davis Finance Committee Jason Yin, Chair, Seton Hall University Regents Junfu Zhang, Chair, Clark University Shuming Bao, China Data Institute Zongwu Cai, University of Kansas Zhuo Chen, University of Georgia Ding Lu, ShanghaiTech University Jinlan Ni, University of Nebraska at Omaha Li Qi, Agnes Scott College Jason Yin, Seton Hall University 8 Conference Sponsors Huazhong University of Science and Technology Huazhong University of Science and Technology (HUST) is a comprehensive research university located in Wuhan, China under the direct supervision of the Ministry of Education. It is a participant university of the former “985” Project in China, and also one of the first universities approved under the national "Double First-Class" Initiative, China’s “Excellence Initiative” for institutions of higher education. Agnes Scott College Since 1889, Agnes Scott College has empowered students to fulfill their potential as inclusive leaders through an innovative liberal arts education. We believe in big questions, global perspectives, and leading change. This is a community where the dreamers, the intellectually curious, and the socially- engaged fulfill their potential. China Research Center Founded in 2001, the China Research Center promotes understanding of greater China based on in-depth research and experience. The Center draws much of its expertise from the universities and institutions around the region, working collaboratively across institutions and jointly with the public and private sectors. The universities represented include Agnes Scott, Dalton State, Emory, Georgia Gwinnett College, Georgia Institute of Technology, Georgia Perimeter, Georgia St, Kennesaw State, Mercer, Oglethorpe, and the University of Georgia, as well as The Carter Center. 9 Frontiers of Economics in China (FEC) Frontiers of Economics in China (FEC) is a double-blind peer-reviewed economics journal edited at Shanghai University of Finance and Economics and published by Higher Education Press of China. With 630 institutional subscribers worldwide and indexed in 10+ databases including EBSCO-BSU, EconLit, ESCI, ProQuest, RePEc and SCOPUS, the journal was ranked as one of “The Highest International Impact Academic Journals of China” in 2016, 2019 and 2020. The FEC welcomes submissions of theoretical and empirical papers from
Recommended publications
  • Reputation and Optimal Contracts for Central Bankers

    Reputation and Optimal Contracts for Central Bankers

    http://www.paper.edu.cn 中国科技论文在线 Macroeconomic Dynamics, 15, 2011, 441–464. Printed in the United States of America. doi:10.1017/S1365100510000076 ARTICLES REPUTATION AND OPTIMAL CONTRACTS FOR CENTRAL BANKERS KEVIN X. D. HUANG Vanderbilt University GUOQIANG TIAN Texas A&M University and Shanghai University of Finance and Economics We implement optimal economic outcomes at the lowest social cost by combining reputation and contracting mechanisms to overcome the time-inconsistency problem of monetary policy associated with an inflation bias. We characterize the conditions under which the reputation force alone induces a central bank to behave in a socially optimal way. When these conditions fail, an incentive contract is invoked, whose cost is significantly reduced by the presence of the reputation force. The contract poses a penalty threat that is a concave function of wage growth, which in equilibrium is tied to expected rather than realized inflation, with a global maximum that provides the least upper bound on all threatened penalties. This bound can be used as a uniform penalty threat to achieve optimal economic outcomes and still, for moderate to large shocks, its magnitude can be much smaller than the size of the transfers required by the standard contracts that are linear functions of realized inflation rates. Further, under both the concave and the uniform penalty threats, the central bank will behave in the socially optimal way and no transfer is materialized in equilibrium. Thus our hybrid mechanism solves the time-inconsistency problem while leaving the central bank with complete discretion to respond to new circumstances, without any reputation cost or penalty threatened by the contract actually invoked along the equilibrium path.
  • Program Overview P

    Program Overview P

    Table of Contents Acknowledgments P. 2 About the Host P. 3 Program Overview P. 4 - 5 Committees P. 6 - 7 Floor Map of the Conference Venue P. 8 - 9 Walking Route from Conference Venue to Lunch Venues P. 10 Walking Route from Conference Venue to Conference Dinner Venue P. 11 Opening Ceremony and Keynote Lectures P. 12 Invited Lectures P. 13 Overview of Contributed / Invited Sessions P. 14 - 22 Full List of Contributed / Invited Sessions P. 23 - 104 Full List of Presenters P. 105 - 120 Bad Weather Arrangement P. 120 Wi-Fi Connection in Conference Venue P. 121 - 135 1 Acknowledgments e would like to express our gratitude to the Econometric Society for providing us an opportunity W to host this prestigious conference. In particular, we thank Professor Atsushi Kajii, the Chair of the Asia Regional Standing Committee for his constant advice. We are indebted to Professor Christopher Pissarides and Professor Mark Rosenzweig, the Program Committee, Local Organizing Committee, Advisory Committee and session organizers for their valuable contributions to the conference. We would like to thank our University for great support during our conference organization. We are grateful to the Dean and the Faculty of Social Science for generous financial support. We are honored to have Professor Eddie Dekel (President of The Econometric Society, 2016), Mr. Mo-po Paul Chan (Financial Secretary of the Hong Kong Government), and Professor Benjamin Wah (Provost of The Chinese University of Hong Kong) to officiate at the opening ceremony. Last but not least, we would also like to take this opportunity to thank all our faculty members, staff and students for their dedicated work behind the scenes.
  • Book Reviews

    Book Reviews

    Book reviews Foreign High-Tech R&D in China: Risks, which would have been helpful in giving us a Rewards and Implications for US-China Rela- better sense of where and how China was going tions. By Kathleen Walsh, Stimson Center, to make its impact felt. Washington, DC, 2003, xv, 141 pp. pdf file, Walsh makes a major contribution in alerting www.stimson.org observers of the Chinese scene to the rapid growth of foreign R&D in China. While she does note that Engendered by the continued efficacy of globaliza- the growth of foreign R&D in the PRC is not tion as a key enabling factor, China is steadily necessarily unique in the context of larger global emerging as an increasingly key player in the economic and technological trends, she points out international technology system. A combination that there are several unique characteristics to the of steady investment in domestic science and tech- Chinese situation, including the place of Beijing nology modernization and expanded foreign invest- accession to the WTO that has opened the market ment into higher value added manufacturing and and given foreign firms greater confidence in the R&D have clearly enhanced the PRC’s technologi- Chinese situation. All too often, China is seen as cal trajectory. There is little doubt that given the just another developing country or a huge menace size of its domestic market and its steadily improv- and potential international beˆtenoire–whenin ing technological prowess, China will assume a reality the situation is far more complex. Through- critical role in the playing out of global competition out the book, Walsh tries to ground her analysis in and have a substantial impact on the pace and hard data so that the reader can walk away with a direction of international scientific progress.
  • February 2021 CURRICULUM VITAE DENNIS TAO YANG PERSONAL

    February 2021 CURRICULUM VITAE DENNIS TAO YANG PERSONAL

    February 2021 CURRICULUM VITAE DENNIS TAO YANG PERSONAL INFORMATION Work Address: Darden School of Business University of Virginia (UVA) Charlottesville, VA 22906, USA Phone: (434) 924−0906 Email: [email protected] Date and Place of Birth: February 1, 1966; Beijing, China Marital Status: Married; two children Citizenship: United States of America EDUCATION 1994 Ph.D., Economics, University of Chicago 1987 B.A., Economics, Magna Cum Laude, University of California, Los Angeles 1984 International Baccalaureate, United World College, Trieste, Italy FIELDS OF INTEREST Economic Development and Growth Labor and Demographic Economics Economics of China and Transition PROFESSIONAL EXPERIENCE Academic Positions: 2013− Dale S. Coenen Free Enterprise Professor, Darden School of Business, UVA 2012− Professor, Darden School of Business, UVA 2013−16 Chang Jiang Professorship, Antai College of Economics and Management, Shanghai Jiao Tong University, China 2007−12 Professor, Department of Economics, Chinese University of Hong Kong (CUHK) 2006−07 Professor, Department of Economics, Virginia Polytechnic Institute and State University (Virginia Tech); 2001−2005, Associate Professor 1994−2001 Assistant Professor, Department of Economics, Duke University 2012− Senior Fellow, Economic Research Center, Hong Kong Institute of Asia-Pacific Studies, CUHK 2010− Research Fellow, Institute for the Study of Labor (IZA), Germany 2005−14 Senior Fellow, Center for China in the World Economy, Tsinghua University 2007−13 Senior Fellow, China Center for Public Finance,
  • An Interdisciplinary Journal on Greater China

    An Interdisciplinary Journal on Greater China

    The China Review An Interdisciplinary Journal on Greater China Volume 14 Number 2 Fall 2014 Special Issue Doing Sinology in Former Socialist States, Reflections from the Czech Republic, Mongolia, Poland, and Russia: Introduction Chih-yu Shih (Guest Editor) Beyond Academia and Politics: Understanding China and Doing Sinology in Czechoslovakia after World War II Olga Lomová and Anna Zádrapová Surging between China and Russia: Legacies, Politics, and Turns of Sinology in Contemporary Mongolia Enkhchimeg Baatarkhuyag and Chih-yu Shih Volume 14 Number 2 Fall 2014 The Study of China in Poland after World War II: Toward the “New Sinology”? Anna Rudakowska The Lifting of the “Iron Veil” by Russian Sinologists During the Soviet Period (1917–1991) Materials Valentin C. Golovachev Soviet Sinology and Two Approaches to an Understanding of Chinese History An Interdisciplinary Alexander Pisarev Uneven Development vs. Searching for Integrity: Chinese Studies in Post-Soviet Russia Journal on Alexei D. Voskressenski Copyrighted Do We Need to Rethink Sinology? Views from the Eastern Bloc Fabio Lanza Press: Greater China Other Articles Professional Commitment and Job Satisfaction: An Analysis of the Chinese Judicial Reforms from the Perspective of the Criminal Defense University Hong Lu, Bin Liang, Yudu Li, and Ni (Phil) He The Discourse of Political Constitutionalism in Contemporary China: Gao Quanxi’s Studies on China’s Political Constitution Chinese Albert H. Y. Chen The State-of-the-Field Review Special Issue Research on Chinese Investigative Journalism,
  • Routledge Handbook of the Chinese Economy

    Routledge Handbook of the Chinese Economy

    www.ebook3000.com ROUTLEDGE HANDBOOK OF THE CHINESE ECONOMY China’s rapid rise to become the world’s second largest economy has resulted in an unprecedented impact on the global system and an urgent need to understand more about the newest economic superpower. The Routledge Handbook of the Chinese Economy is an advanced-level reference guide which surveys the current economic situation in China and its integration into the global economy. An internationally renowned line-up of scholars contribute chapters on the key components of the contemporary economy and its historical foundations. Topics covered include: • the history of the Chinese economy from ancient times onwards; • economic growth and development; • population, the labor market, income distribution, and poverty; • legal, political, and financial institutions; and • foreign trade and investments. Offering a cutting-edge overview of the Chinese economy, the Handbook is an invaluable resource for academics, researchers, economists, graduate, and undergraduate students studying this ever-evolving field. Gregory C. Chow is Professor of Economics and Class of 1913 Professor of Political Economy, emeritus, at Princeton University, USA and has been on the Princeton faculty since 1970. Dwight H. Perkins is the Harold Hitchings Burbank Professor of Political Economy, emeritus, at Harvard University, USA and has been on the Harvard faculty since 1963. www.ebook3000.com In this volume, Gregory Chow and Dwight Perkins assemble a global array of authors to pro- vide a comprehensive account of China’s economic development both before and after the reform initiatives of the late 1970s. While many of the contributors focus on institutions, poli- cies and outcomes at the national level, detailed accounts by reform participants Wu Jinglian and Yi Gang along with an iconoclastic essay by Lynn White provide readers with unusual insight into the operational mechanisms of China’s political economy.
  • The Reliability of China's Economic Data

    The Reliability of China's Economic Data

    U.S.-China Economic and Security Review Commission Staff Research Project January 28, 2013 The Reliability of China’s Economic Data: An Analysis of National Output by Iacob N. Koch-Weser USCC Policy Analyst, Economics and Trade Disclaimer: This paper is the product of professional research performed by staff of the U.S.-China Economic and Security Review Commission, and was prepared at the request of the Commission to support its deliberations. Posting of the report to the Commission’s website is intended to promote greater public understanding of the issues addressed by the Commission in its ongoing assessment of U.S.-China economic relations and their implications for U.S. security, as mandated by Public Law 106-398 and Public Law 108-7. However, the public release of this document does not necessarily imply an endorsement by the Commission, any individual Commissioner, or the Commission’s other professional staff, of the views or conclusions expressed in this staff research report. 1 Table of Contents Table of Contents .................................................................................................................................... 2 Executive Summary ............................................................................................................................... 4 Introduction .............................................................................................................................................. 6 Section I: The Quality of Statistical Work .....................................................................................
  • Department of Economics Newsletter

    Department of Economics Newsletter

    DEPARTMENT OF ECONOMICS NEWSLETTER Department of Economics Newsletter May 2015 GENERAL DEPARTMENT NEWS The Economics Department at Johns 2016. Professor Quah is an economic Poster for the Richard Ely Distinguished Hopkins has had another busy year with theorist with many major works to his credit Lecture Series 2014-2015: multiple events and many developmentsMay 20and15 is an outstanding addition to the among the faculty and graduate students. Department. This Newsletter will cover many of them but feel free to keep track of all developments as The Department was well represented at the they happen on the department website, AEA Meetings in January, 2015 in Boston. http://www.econ.jhu.edu/. Among the faculty, Chris Carroll, Olivier Jeanne, Ali Khan, Anton Korinek, Robert We welcomed Assistant Professor Ying Chen Moffitt, Nick Papageorge, and Yuya Sasaki to the Department in September. Ying were on the program. The traditional cocktail specializes in Economic Theory and comes party and reception also drew a number of from Southampton and Arizona State and current and former graduate students and received her Ph.D. from Yale. Ying is faculty. We will be having another in January, teaching graduate and undergraduate 2016 in San Francisco. Mark it on your courses in micro theory. calendars. We look forward to the Spring 2016 Ely We are also happy to report that Dr. Robert Our annual Richard T. Ely Lecture this year Lectures as well, which will be given by Barbera, a graduate alumnus from our was given by John Geanakoplos (photo Professor Robert Porter of Northwestern Department, has continued his stepped up below) from Yale University, who gave four University.
  • Existence of Equilibria in Games with Arbitrary Strategy Spaces and Payoffs: a Full Characterization

    Existence of Equilibria in Games with Arbitrary Strategy Spaces and Payoffs: a Full Characterization

    Existence of Equilibria in Games with Arbitrary Strategy Spaces and Payoffs: A Full Characterization Guoqiang Tian¤ Department of Economics Texas A&M University College Station, Texas 77843 USA November, 2008/Revised: May, 2009 Abstract This paper provides a complete solution to the question of the existence of equilibria in games with general strategy spaces that may be discrete, continuum or non-convex and payoff functions that may be discontinuous or do not have any form of quasi-concavity. We establish a single condition, called recursive diagonal transfer continuity, which is both necessary and sufficient for the existence of pure strategy Nash equilibrium in games with arbitrary compact strategy spaces and payoffs. As such, our result strictly generalizes all the existing results on the existence of pure strategy Nash equilibrium. Moreover, recursive diagonal transfer continuity also permits full characterization of symmetric, mixed strategy, and Bayesian Nash equilibria in games with general strategy spaces and payoffs. The approach and main result developed in the paper can also allow us to ascertain the existence of equilibria in impor- tant classes of economic games. As an illustration, we show how they can be employed to fully characterize the existence of competitive equilibrium for economies with excess demand functions. The method of proof adopted to obtain our main result is also new and elementary — a non-fixed-point-theorem approach. Keywords: existence of pure, symmetric, mixed strategy, and Bayesian Nash equilibrium; recursive diagonal transfer continuity; discontinuity; non-quasiconcavity; nonconvexity. ¤This is a research project working on for a long time. I thank Paulo Barelli, Xiaoyong Cao, Eric Maskin, David Rahman, Mingjun Xiao, and seminar participants at Texas A&M University for comments and suggestions.
  • PDF Is a Selection from a Published Volume from the National Bureau of Economic Research

    PDF Is a Selection from a Published Volume from the National Bureau of Economic Research

    This PDF is a selection from a published volume from the National Bureau of Economic Research Volume Title: American Universities in a Global Market Volume Author/Editor: Charles T. Clotfelter, editor Volume Publisher: University of Chicago Press Volume ISBN: 0-226-11044-3; 978-0-226-11044-8 Volume URL: http://www.nber.org/books/clot08-1 Conference Date: October 2-4, 2008 Publication Date: May 2010 Chapter Title: Higher Education in China: Complement or Competition to US Universities? Chapter Author: Haizheng Li Chapter URL: http://www.nber.org/chapters/c11599 Chapter pages in book: (269 - 304) 8 Higher Education in China Complement or Competition to US Universities? Haizheng Li 8.1 Introduction In 2006, a total of 134,000 Chinese students went abroad to further their education, a number almost as large as the total number of new interna- tional students (142,923) coming to the United States from all countries.1 Chinese students accounted for 11.6 percent of the total number of inter- national students in the United States in that year. In recent years, China has ranked fi rst, or second to India, in numbers of students studying in the United States. Since 1978, when China began to open to the outside world, the United States has been receiving an increasing number of Chinese stu- dents. In 2005, 23 percent of all overseas Chinese students were in the United States (Fazackerley and Worthington 2007). Chinese students mostly enroll in graduate programs in the United States, and they are in all major universities, especially Research I universities.
  • On the Fundamentals of a Successful Reform for National Prosperity—An Economic Analysis Based on the Practice of China’S Reform

    On the Fundamentals of a Successful Reform for National Prosperity—An Economic Analysis Based on the Practice of China’S Reform

    Front. Econ. China 2013, 8(4): 490–515 DOI 10.3868/s060-002-013-0025-5 RESEARCH ARTICLE Xudong Chen, Guoqiang Tian, Jijun Xia On the Fundamentals of a Successful Reform for National Prosperity—An Economic Analysis Based on the Practice of China’s Reform Abstract This paper discusses the fundamentals required for successful reform, i.e., the necessary institutional changes required to make a nation grow sustainably wealthier. It argues that enriching the people is a prerequisite for a prosperous nation and further reveals the inherent logic behind the statement “in order to enrich the people, they must be given private rights, and in order to protect the people’s private rights, public power must be limited.” Based on this argument, we examine and analyze the experience of China’s reform over the past 30 years and come to the conclusion that it is necessary to transform government functions and further deepen market-oriented reform. We hold that China’s economic performance bears no special or exceptional economic law, and there does not exist the so-called “China Model” characterized by government taking the leading role as a relatively mature, stable, and widely applicable development model, but that there does exist a Chinese development path or experience featuring the inherent logic of “prospering the nation through enriching its people” that can be employed by countries all over the world. Keywords prospering the nation through enriching its people, information asymmetry, incentive compatibility, limited government JEL Classification
  • Robust Collusion with Private Information*

    Robust Collusion with Private Information*

    Robust collusion with private information* David A. Miller UCSD† May , Accepted for publication in the Review of Economic Studies Abstract e game-theoretic literature on collusion has been hard pressed to explain why a cartel should engage in price wars, without resorting to either impatience, symmetry restrictions, inability to communicate, or failure to optimize. is paper introduces a new explanation that relies on none of these assumptions: if the cartel’s member rms have private information about their costs, price wars can be optimal in the face of complexity. Specically, equilib- ria that are robust to payoff-irrelevant disruptions of the information environment generically cannot attain or approximate efficiency. An optimal robust equilibrium must allocate market shares inefficiently, and may call for price wars under certain conditions. For a two-rm car- tel, cost interdependence is a sufficient condition for price wars to arise in an optimal robust equilibrium. at optimal equilibria are inefficient generically applies not only to collusion games, but also to the entire separable payoff environment (Chung and Ely )—a class that includes most typical economic models. Keywords: Collusion, price wars, private information, repeated games, mechanism design, ex post incentive compatibility. JEL Classications: C, C, D, L. *Previous working versions of this paper were titled “Optimal ex post incentive compatible equilibria in repeated games of private information” and “e dynamic cost of ex post incentive compatibility in repeated games of private information.” †Address: Department of Economics, Gilman Dr., La Jolla, CA –. E-mail: [email protected]. Home page: http://dss.ucsd.edu/~dmiller. I am deeply grateful to Susan Athey for advice and comments, and am indebted to Bruno Biais and several anonymous referees for excellent critiques and suggestions.