Dynamic Financial System: Complexity,Fragility and Regulatory Principles

A financial system improves the allocation of real resources and enhances the performance of the production economy, but these benefits are offset in part by the risk of financial distress and the associated deadweight loss resulting from bankruptcy costs. We argue that “tiers” of financial claims increase complexity and fragility of the financial network. In equilibrium, the financial system grows relative to the real economy as the allocation of funds and risks becomes more sophisticated and as more financial claims are tiered. Growth is limited by the risk of a tiered, complex financial network and by the need to set aside additional capital as the financial sector grows. We discuss several sources of fragility in the financial system. We propose that regulators should limit the breaks in the system and do more to improve the resiliency of the network and less on individual issues that are only symptoms of fundamental problems of a network. We advocate a market based system of regulation in which market participants regulate each other, to a degree. In order for this to be feasible, the financial network must be organized according to three principles: trading transparency, competitive markets and competitive regulators, and incentive alignment of participants. Insofar as these regulatory approaches are successful in limiting network fragility, capital requirements can be reduced. Regulators should keep in mind this tradeoff between capital and regulation. With regard to regulatory policy, regulators should let the three principles be their guide in adapting to the evolving financial system rather than implementing narrowly conceived regulations that are quickly outmoded.     

Advertising in China—Problems and Prospects

Economic reform in China has revived the importance of the market forces and of advertising. Although advertising has a less important role in the Chinese market than in Western countries, it is the fastest growing industry in China. Foreign participation in advertising is limited and contributes about 10 per cent of Chinese advertising revenues. This paper argues that there is ample opportunity for foreign advertisers. Nevertheless, because the Chinese market is different, foreign advertisers need to be patient when attempting to enter the market. The problems and prospects of advertising in China are pinpointed in this paper. Some precautionary measures for the advertisers are also discussed.     

Learning Approaches and Outcome‐Based Teaching and Learning: A Case Study in Hong Kong,China

Outcome‐based education is a pedagogical process which focuses on the achievement of certain specified results. Outcome‐based teaching and learning (OBTL), therefore, is concerned with curriculum design and ensuring that the contents, delivery, activities, and assessments are all aligned to help facilitate students to attain specific intended learning outcomes. This study explores whether and how outcome‐based teaching impacts on the learning approaches of one cohort of undergraduate business students at a university in Hong Kong, China to undergo outcome‐based teaching, newly introduced as part of a university‐wide policy to adopt OBTL. The learning approaches of these business students were measured using John Biggs's (1987 Biggs, J. 1987. Student approaches to learning and studying, Melbourne: Australian Council for Educational Research.  [Google Scholar]) Study Process Questionnaire (SPQ) to determine whether these students tended to favor surface learning approaches, deep learning approaches, or achieving learning approaches upon initial entry into the university. Changes in learning approaches were tracked, after a semester's exposure to OBTL, through survey and focus group interview methods. Findings indicated a significant amount of transference between learning approaches deployed by these students, demonstrating a high level of adaptability.     

Profitable growth: Avoiding the ‘growth fetish’ in emerging markets

Growth management is a challenging but critical corporate strategy facing the fast economic growth in emerging markets. An overemphasis on growth would lead to the growth fetish, where growth is unqualified and seen as an end in itself. By examining the performance of 105,260 firms in key sectors of Brazil, Russia, India, and China (BRIC) from 2002 to 2011, this study presents quantitative evidence that supports a profit-oriented strategy as a more effective path to sustained profitable growth in emerging markets. To further support this argument, this study also provides qualitative evidence of a group of 70 sustained high-performing firms that are superior to their peers (the top 500 private companies in each of the BRIC countries) in terms of profit, growth, market share, and efficiency over a 10-year period. The study shows that sustained profitable growth requires qualified sales growth (i.e., organic growth), competence-based and competence-enhancing growth, and continuous product diversification.     

How the Rapid Development of VoIP Technologies Affects Consumer Welfare and the Market

Abstract

The impact of Voice over Internet Protocol (VoIP) growth on other telecommunication services, such as landlines and mobile telephony, has gained significant interest in Korea recently. An emerging alternative to landline telecommunications, VoIP is experiencing explosive growth in demand and is providing significant economic utility to consumers. The rapid growth of smart phones has also created a considerable amount of controversy regarding the potential impact of VoIP on the mobile phone market. This study provides quantitative estimations of consumer surplus for landline, mobile and VoIP services in the Korean telecommunications market using monthly call data from January of 2006 to June of 2009, a period when VoIP services grew rapidly. Empirical analyses are conducted to estimate consumer surplus based on the demand functions of each telecommunication service. Additional analyses are conducted on consumer surplus change as well. Policy implications for the rapid growth of VoIP and its impact on consumer surplus change are also discussed.     

加州大学洛杉矶分校商学院 如何具有战略远见

必须养成经常进行战略思考的习惯,锻炼自己的战略思维能力。战略的制定是一个人平时的思考过程在逻辑上的拓展,它体现着一种生活态度。     

Experiments on strategic choices and markets

Much of experimental research in marketing has focused on individual choices. Yet in many contexts, the outcomes of one’s choices depend on the choices of others. Furthermore, the results obtained in individual decision making context may not be applicable to these strategic choices. In this paper, we discuss three avenues for further advancing our understanding of strategic choices. First, there is a need to develop theories about how people learn to play strategic games. Second, there is an opportunity to enrich standard economic models of strategic behavior by allowing for different types of bounded rationality and by relaxing assumptions about utility formulation. These new models can help us to more accurately predict strategic choices. Finally, future research can improve marketing practice by designing better mechanisms and validating them using experiments.     

农民权益保障视角下的土地征用程序研究*——以河北省5个建设项目为例

[目的]以河北省奥运村核心区、京张高铁、大唐电厂、京蔚高速、延崇高速5个建设项目为研究对象,分析我国现行征地程序制度在实际实施中存在的问题,并提出有针对性的政策建议,为我国征地程序的完善和征地工作的开展提供参考。[方法]通过问卷调查和访谈了解农民对于征地的认知,从自由的事先知情的同意(FPIC)原则的4个方面对征地程序制度及实施情况进行对比分析。[结果](1)我国的土地征用程序不能完全符合FPIC原则,(2)征地程序实施的偏差使农民权益受损,(3)征地中的非正式治理方式激化征地矛盾,(4)政府和农民的对立关系破坏平等协商机制,(5)政府对不同规模征地项目的实施行为存在明显差异。[结论]保障农民权益和减少用地矛盾需要从FPIC层面完善征地程序,增强在实施中的程序公开和透明,并打破政府和农民之间的对话壁垒,实现协商的"全过程性"和"灵活性"。     

农民对宅基地权利认知及影响因素研究*——以河北省新乐市为例

［目的］通过对河北省新乐市农民在宅基地权力认知及影响因素方面的分析,探究我国农村宅基地制度并提出相关建议。［方法］文章受制度功能可信度理论启发,以河北省新乐市14个行政村为调研对象,探究农民对宅基地相关权利认知情况,同时采用Spearman相关性分析研究影响农民宅基地认知的因素。［结果］调研地自发宅基地流转市场已形成,宅基地制度功能处于社会保障功能向财产功能转变的过渡阶段; 农民对宅基地所有权认知不明晰,但并不影响宅基地市场建立; 在宅基地流转中,农民更关注相互之间信任、村委会保留的记录、流转中形成的“事实产权”; 农民性别、年龄、受教育水平和家庭人口数是影响权利认知的主要因素。［结论］依据制度功能可信度理论充分考虑宅基地制度在现阶段的功能变化,因地制宜; 政府应关注农民的宅基地使用权问题,使其真正成为农民的财产; 应对农村宅基地流转中形成的事实产权逐渐正式化; 应制定年轻人就业帮扶和年长者社会保障等相关政策,避免宅基地流转影响农村社会稳定性。     

An analysis on perceived crowding level reported by domestic visitors of South Korean National Parks: a multilevel ordered logit approach

Perceived Crowding Level (PCL) is an indicator of the social carrying capacity of recreational sites such as National Parks. Using a sample of national-level visitor survey data across 21 National Parks in South Korea, this paper aims to apply a multilevel ordered logit model as a method in testing for statistical relationships between the PCL and the covariates, accounting for site- and individual-specific heterogeneity. The results hint that levels of perceived crowding in South Korean National Parks are related to factors such as the behaviour of other users and the quality of park facilities such as comfort in accommodation. The measured level of heterogeneity can provide useful information about the level (nation-wide or park-specific) of intervention policies and management strategies.