Optimal financial investments for non-concave utility functions

We prove a formula for the computation of optimal financial investments in an expected utility framework with arbitrary (not necessarily concave) utility functions. This extends classical results on optimal financial investments for strictly concave utility functions and is of importance particularly for applications of prospect theory where the utility function has a convex-concave shape.     

An experimental investigation of wage taxation and unemployment in closed and open economies

We investigate experimentally the economic effects of wage taxation to finance unemployment benefits for a closed economy and an international economy. The main findings are the following. (i) There is clear evidence of a vicious circle in the dynamic interaction between the wage tax and unemployment. (ii) Employment is boosted by budget deficits but subsequent tax rate adjustments to balance the budget lead to employment levels substantially lower than theoretically predicted. (iii) A sales risk for producers due to price uncertainty on output markets appears to cause a downward pressure on factor employment. For labor the wage tax exacerbates this adverse effect.     

Position limit for the CSI 300 stock index futures market

The aim of this study was to find the optimal position limit for the Chinese stock index (CSI) 300 futures market. A low position limit helps to prevent price manipulations in the spot market, and thus keeps the magnitude of instantaneous price changes within the tolerance range of policymakers. However, setting a position limit that is too low may also have negative effects on market quality. We propose an artificial limit order market with heterogeneous interacting agents to examine the impact of different levels of position limits on market quality, measured as liquidity, return volatility, efficiency of information dissemination, and trading welfare. The simulation model is based on realistic trading mechanisms, investor structure, and order submission behavior observed in the CSI 300 futures market.Our results show that on the basis of the liquidity status in September 2010, raising the position limit from 100 to 300 could significantly improve market quality and at the same time keep the maximum absolute price change per 5 s below the 2% tolerance level. However, the improvement becomes only marginal if the position limit is further increased beyond 300. Therefore, we believe that raising the position limit to a moderate level can enhance the functionality of the CSI 300 futures market, which should benefit the development of the Chinese financial system.     

Informational cascades with endogenous prices: The role of risk aversion

In this paper, we show that long run market informational inefficiency and informational cascades can easily happen when trades occur at market clearing prices. We consider a sequential trade model where: (i) the investors’ set of actions is discrete; (ii) dealers and investors differ in risk aversion; (iii) investors’ information is bounded. We show that informational cascade occurs as soon as traders’ beliefs do not differ too sharply. Thus, prices cannot fully incorporate the private information dispersed in the economy.     

基于S1000D4．0的IETM标准化对策研究

标准化是交互式电子技术手册（IETM）的关键技术之一。本文介绍了IETM标准化现状,并且就目前IETM领域应用最多的ASDS1000D标准进行了着重介绍。重点阐述了S1000D4．0标准的主要内容,包括公共源数据库、数据模块、出版物模块、信息显示和发布等。在总结S1000D相对于其他标准优势的基础上,提出开发我国IETM标准时应在大胆借鉴S1000D的基础上研究开发适合我国国情的技术标准,并且指出采用XML技术、Web架构和CSDB来规范我国开发IETM。     

价值工程在新药研发中的应用浅析

加快价值工程（VE）在新药研发中的应用,降低新药研发成本,从而控制医疗费用不断上涨。研究了VE发展现状,比较了VE与项目管理及药物经济学之间的区别,分析目前其在医药领域应用的困难。针对存在的困难,主要从加强政府主导、加快人才培养和理论基础研究、建立风投机制等四个方面入手,来加快VE理论在新药研发中的应用。     

Innovation,external technical linkages and small firm commercial performance: an empirical analysis from Western New York

This paper examines the role of external service linkages in the innovation and market peformance of small manufacturing firms (SMFs). Survey data from a technological cross-section of 146 Western New York SMFs are summarized. The data suggest a helpful role for consultants in the product development efforts of innovative firms, especially those that serve foreign export markets. Several multiple discriminant models are presented, each of which suggests an interactive connection between SMF commercial performance, externa) technical links, innovation propensity and in-house R&D. It is argued that innovative SMFs that exploit specialized technical services perform significantly better than comparably sized firms that rely solely on in-house resources. It is also argued that the quality of a region's producer service environment may have a significant bearing on the growth potential of its SMF population. The paper concludes by discussing the main academic and public policy implications that flow from the empirical results.     

Optimal regime switching and threshold effects

We consider a general control problem with two types of optimal regime switch. The first one concerns technological and/or institutional regimes indexed by a finite number of discrete parameter values, and the second features regimes relying on given threshold values for given state variables. We propose a general optimal control framework allowing to derive the first-order optimality conditions and in particular to characterize the geometry of the shadow prices at optimal switching times (if any). We apply this new optimal control material to address the problem of the optimal management of natural resources under ecological irreversibility, and with the possibility to switch to a backstop technology.     

Direct versus intermediated finance: An old question and a new answer

We consider a closed economy where a risk neutral bank competes with a competitive bond market. Firms can finance a risky project either by a bank credit or by issuing a bond which is directly sold to risk averse investors who also hold safe deposits at the bank. We show that the bank tends to allocate more capital to lower quality projects but there are some interesting qualifications. If the asymmetric information concerns only the success probability, then we observe adverse selection while if it concerns only the expected return, bad types are driven out of the market.     

Income based price subsidies and parallel imports

We present a policy game where a Rich country has a higher ability than a Poor country to commit to certain elements of health policy such as providing income related price subsidies and allowing parallel imports (PI). When allowing PI is not a choice for the Poor country, the Rich country allows PI and both countries provide a subsidy to their poorer buyers as the subgame perfect equilibrium policies. However, when the Poor is able to PI a different equilibrium may arise. We show that the ability of the Poor to allow PI might increase welfare in this country even if it is never implemented. We also prove that as the Poor country gets richer, it will not be in their best interest to sign an agreement with the Rich to commit to not allowing PI.