Abstract： The combination of socialism and market economy is the most significant contribution of China road to the economical form of socialism. And it is a central task of the Chinese characteristics that socialistic theory has to analyze this combination. The “primary form” of socialism and the gene of Chinese civilization is the background of the coordinate system or frame of reference by which we distinguish the problems of “Chinese characteristics” in the practice and the theory， but we will face the problem theorizing the gene of Chinese civilization. In the market economy， the key difference between socialism and capitalism is that the design of significant institution and arrangements is based on the wills of state or capital. We should study the optimum ownership structure based on the instrumental value and intrinsic value， although the basic economic system in the primary stage of socialism can provide an important institutional basis to make the country getting rid of the adverse effects of capital will. Further， in China， when discussing the relationship between government and the market， we must consider the central-local structure with government-business relationship， and this is the Chinese characteristic of economic governance structures.
Key Words： Chinese Characteristics; Political Economy; Value of Ownership

Abstract： Based on the requirements of the critique of the political economy of the capitalist mode of production， and the “poverty accumulation” characteristic of his time， Marx directly placed “the circulation of labor” into “the circulation of capital”. Hence， Marx didn't explore the theoretical propositions of extended reproduction in depth， which have great significance to the construction of socialist market economy， and he didn't study labor's participation in the distribution of surplus value. Based on the theories of historical materialism and a review of Marx's labor theory of value creation， this paper discusses the problem of the labor process of knowledge production department， which is characterized by “a unity of knowledge production and knowledge consumption”， the problem of extended reproduction of labor-power， and the problem of the sharing of surplus value. In doing this， we take into account the reality of China， China's ongoing practice， Marx's vision of the future society， and the research results both abroad and at home. We finally put forward several policy recommendations to the innovation development and management system reform of knowledge department.
Key Words： Reproduction of Labor-power; Circulation of Labor; Value of Labor; Knowledge Economy; Human Capital

Abstract： Confronted with the coexistence of heavy debt and deflation， China shall take action to safeguard “debt-deflation” risk. Experience from the US and Japan reveals that when solely used to stabilize aggregate demand during “debt-deflation” cycles， fiscal or monetary policy has to be intense and could easily become unsustainable. By constructing a DSGE model involving features of heavy debt and deflation as well as fiscal and monetary policy that conforms to China， this paper shows that policy interactions can ameliorate the sustainability of both policies and improve the government's ability to resolve “debt-deflation” cycles. The “reflation” effect of monetary policy can cut down real debt and financing costs of the government， thus allowing for room of fiscal expansion. Meanwhile， active fiscal policy will also exert the “reflation” effect which in turn lowers the magnitude of monetary policy needed to accomplish adequate “reflation”. Therefore， Chinese government should strengthen monetary-fiscal policy interactions to prevent the economy from being stuck in “debt-deflation” cycles.
Key Words： Debt-Deflation; Monetary Policy; Fiscal Policy; Policy Interaction; DSGE Model

Abstract： Considering the endogenous structures among total demand， total supply curve and Taylor rule， especially the nonlinear characteristics of monetary policy rules， this paper builds a time-varying parameters structure vector autoregressive (TVP-SVAR) model including interest rate， inflation and output gap， and uses Markov chain Monte Carlo methods to estimate a reduced form of time-varying parameters vector autoregressive model with stochastic volatility (TVP-VAR)， finally through backstepping the estimated results to monetary policy rules， we derive the time-varying parameters Taylor rule. Then we examine the changes of time-varying parameters Taylor rule and time-varying conduction effect of monetary policy based on the data from 1996Q1 to 2015Q3 in China. The estimated results show that China's monetary policy has obvious pegged to output gap and inflation target， and present a procyclical adjustment in recent years. The parameters targeting to output gap declines recently， while the parameters targeting to inflation are adjusting significantly with the changes of inflation. Furthermore， the impact of expansion of output gap on inflation has a stimulating effect， and this effect is increasing recently. At last this paper puts forward some policy enlightenments.
Key Words： Taylor Rule; Output Gap; Inflation Rate; Time-varying Parameter; TVP-SVAR Model

Abstract： The paper discusses how import liberalization of final goods will affect pure domestic selling firms' profitability. In the short run， import liberalization of final goods allows more foreign firms to export to the domestic market， which intensifies competition of domestic market and thus reduces profitability of pure domestic selling firms. However， in the long run， because firms can choose whether to enter or exit the market， some domestic reigning firms will choose to exit， leaving the firms remaining in the market enjoy higher profitability in equilibrium. We first illustrate the idea through a theoretical model， then we use Chinese firm-level data from 2000—2007 to provide some empirical evidence. We also verify the channel through which import liberalization may affect firm profitability. Meanwhile， the empirical results show that tariff reductions on intermediate input will have positive effect on the profitability of pure domestic selling firms. At last， our model and empirical results also indicate that a firm with higher productivity will have higher profitability.
Key Words： Import Liberalization; Firm Profitability; Industrial Tariff; Firm Productivity

Abstract： In this paper， a theoretical model under the framework of heterogeneous enterprises is built to investigate the mechanism of intermediate input trade liberalization on enterprises' technology choice. Applying China's manufacturing enterprises data from 2000 to 2006， this paper analyzes the effect of intermediate input trade liberalization on China's manufacturing enterprises' technology choice. Empirical results show that after entering into the WTO， the intermediate input trade liberalization has only accelerated China's manufacturing export enterprises to adopt high technology. Taking productivity discrepancy into account， the positive effect is related to enterprises' initial productivity. Trade liberalization of intermediate inputs has only significantly stimulated export enterprises with medium level of productivity to upgrade technology. Other conclusions are that the effects on technology-intensive exporting enterprises are strongest while the effects on labor-intensive exporting enterprises are not significant.
Key Words： Trade Liberalization of Intermediate Inputs; Technology Choice; Firm Productivity

Abstract： Changes of manufacturing structures could improve efficiency of economic growth. But changes of manufacturing structure are not always associated with high value-added of high-technology industries for restriction of various factors in the short term， and efficiency of economic growth don't improve. Manufacturing industries are divided into high-technology， mid-technology and low-technology industries by OECD's method of industrial classification， so that upgrading and rationalization of manufacturing structure could be measured from multi-dimension such as output value， net value of fixed assets and added value， and paper build econometric models of changes of manufacturing structure and efficiency of economic growth which were tested by GMM. Results show that upgrading of manufacturing structures had negative effect on efficiency of economic growth， and rationalization of manufacturing structure had positive effect on its. Efficiency of economic growth are measured by intensive level of economic growth and rate of input-output， upgrading and rationalization of manufacturing structures are respectively measured with two methods from each dimension， which estimation results are consistent. Article finds that upgrading of manufacturing structures could inhibit efficiency of economic growth， and which is consistent with the fact of manufacturing in low-end of the global value chain in the process of manufacturing structural upgrading in China. Important reasons that upgrading of manufacturing structure could hinder efficiency of economic growth weren't with high value-added.
Key Words： Upgrading of Manufacturing Structures; Rationalization of Manufacturing Structures; Intensive level of Economic Growth; Rate of Input-output

Abstract： Market uncertainty can lead to distortion in the firm's allocation of labor and result into productivity loss. This paper first divides the sample export firms into four groups by their sale order in both domestic and foreign market. And by making Blinder-Oaxaca regressions， we find labor allocation distortion can cause a larger productivity loss for the firms with synchronous growth in domestic and foreign sale orders than those with decreasing orders， which mean a significant market opportunity loss. The allocation distortion will result into more productivity loss in export-oriented firms， which includes the loss of learning-by-exporting and the loss of variety gain. In addition to the information insufficient， less-developed labor and product market causes labor adjustment lag and factor allocation distortion， and lowers the TFP of exporters.
Key Words： Market Shock; Reversed Adjustment; Distorted Allocation; Productivity

Abstract： This paper establishes a theoretical model involving dynamic environmental taxation， pollution accumulation and economic growth. We apply the Shooting method to calculate equilibrium solutions at all periods on the saddle path and analyze the externality of dynamic environmental taxation. The major findings indicate that through correcting the over-consumption of energies， the policy of increasing dynamic environmental taxation can not only ensure the dual benefits of economic growth and environmental pollution reduction but also can achieve the target of welfare maximization on the saddle path. On the contrary， without environmental taxation， the over-consumption of energies could not be restrained and the negative externality of environmental pollution may cause heavy loss of productivity as well as social welfare. However， the rigid environmental taxation policy leads to a hypercorrection of the over-consumption of energies， thus the consequential under-investment results in weak output growth and constant low level of social welfare on the saddle path. This paper further analyzes the optimum timing of dynamic environmental taxation by establishing different optimized objective functions and finds that the timing of levying dynamic environmental tax by the government should be consistent with the timing of environmental pollution arising so as to reduce the dependency of economic growth on energy and achieve economic growth as well as social welfare improvement.
Key Words： Dynamic Environmental Taxation; Environmental Pollution; Economic Growth; Saddle Path; Externality

Abstract： The paper focuses on the role of health human capital and health investment in economic development. Based on Ramsay model， this article first develops a neo-classical economic model showing the influences of physical capital investment， health investment and education investment on production output in economic development. Then using two cross-country panel datasets， including one panel dataset of for 138 countries （region） and another panel dataset of East Asia for 10 countries （region）， the study examines empirically the effects of health investment and education investment on per capita output， and concludes that heath investment and education investment both have significant positive effects on output.
Key Words： Health Investment; Human Capital; Economic Growth; Transnational Output Gap

Abstract： In the context of rapidly growing Chinese enterprises' OFDI， this paper theoretically and empirically analyzes the influence of OFDI to Chinese domestic employment. The theoretical models are built to analyze the influence mechanism by which OFDI impact domestic employment. The empirical results show that OFDI of Chinese enterprises has a significant and positive impact on domestic employment. Meanwhile， the more times enterprises invest， the more labors that the parent company will employ. The impact is robust to enterprises' ownership types and the income levels of investment destination. Different investment motivations have different impact on employment. The effect produced by enterprises' resource-seeking OFDI to employment of its parent company is affected by industry classification， and the effect produced by enterprises' horizontal and vertical OFDI to its parent company's employment is affected by income levels， import and export of intermediate product and final product.
Key Words： OFDI; Employment; Investment Motivations; Trade

Abstract： Why do cities sprawl？Why is there leapfrog in the interior city? This paper focuses on the characteristic fact that land development is affected by market demand and development lag， and start from the impact of market uncertainty. Based on classical dynamic mono-centric city model， our research constructs a theoretical model which could explain the fast expansion of urban land use as well as “leapfrog sprawl”. We find that urban development density is affected by development lag， market uncertainty， and also their crossing effect. Market uncertainty has positive relationships with urban sprawl when there is a long lag. Furthermore， once taking the development ratio of interior and exterior into consideration， the improvement of uncertainty can give rise to “leapfrog sprawl”. The empirical analysis makes use of DMSP/OLS night-time light data and Landscan population data， and devises a new method to calculate urban sprawl and population density of city periphery. We tests how market uncertainty affects urban sprawl in China， the results suggest that higher degree of uncertainty does improve the urban sprawl index， which means that market uncertainty derived from economic fluctuation is also a critical cause of the form of urban spatial structure in China， so government should take full allowance of economic fluctuation in tackling and control urban sprawl.
Key Words： Uncertainty; Development Lag; Urban Sprawl; Night-time Light Data

Abstract： We revise the estimation of infrastructure capital stock. The revision includes rectifying the statistic caliber of infrastructure investment so that data before and after 2003 are comparable， and new estimation of depreciation rate and infrastructure capital stock of base year. Based on the new estimation of infrastructure stock， we analyze the status quo of infrastructure and the direction of future investment. Our results show that the contribution of infrastructure to GDP growth is 9.3% from 1978 to 2014. Ever since 1990s， the growth rate of infrastructure stock is much higher than growth rate of GDP. And the proportion of infrastructure stock in capital stock rose before 2002 but declined after 2002. Growth rate of infrastructure investment， proportion of infrastructure stock in capital stock， and infrastructure product ratio in western China are higher than those in central and eastern China. Infrastructure stock per capita in central China is higher than that in eastern and western China. Considering the high infrastructure stock per capita and decreasing population of western China， more infrastructure should be invested in eastern and central China.
Key Words： Infrastructure Investment; Infrastructure Stock; Direction of Infrastructure Investment