We build a Dynamic General Equilibrium model with search frictions for the allocation of physical capital and investigate its implications for the business cycle. While the model is in principle capable of generating substantial internal propagation to small exogenous shocks, the quantitative effects are modest once we calibrate the model to fit firm-level capital flows. We then extend the mode...

XBRL is a financial reporting language, which is based on XML. Since 2003 we have tried to use financial reporting based on XBRL for listed company disclosure in China. This study mainly stands on the perspective of small investors, using empirical research methods to investigate whether XBRL reduced the level of information asymmetry in China’s capital market or not and further explaining XBRL...

Let X ∈ R denote a random stock market return vector, where Xj is the value of a one unit investment in stock j at the end of the trading day. We require that Xj ≥ 0 for j = 1, 2, . . . , m, that is, an investor cannot lose more than the invested capital. Let b, bj ≥ 0, ∑m j=1 bj = 1, denote a portfolio, that is, an allocation of investor’s capital across the investment alternatives. Let B deno...

This paper addresses the capital mobility among regions within China. Using a range of panel estimators which deals with the non-stationarity of time series components, individual heterogeneity and common unobserved factors, we show that the savings and investment (both expressed as ratios to GDP) are positively correlated for a sample of 28 Chinese provinces over the period of 1978 to 2006. Ac...

I build a model of neoclassical production to examine the capital market and welfare effects of a uniform accounting standard (like IFRS). Firms vary in their cost of compliance to the standard, and investors vary in their cost of learning diverse standards for capital allocation. I show that a uniform accounting standard increases the quantity of capital in the economy and lowers the cost of c...

This paper proposes a one-sector multigroup growth model with endogenous labor supply in discrete time. Proposing an alternative approach to behavior of households, we examine the dynamics of wealth and income distribution in a competitive economy with capital accumulation as the main engine of economic growth. We show how human capital levels, preferences, and labor force of heterogeneous hous...

The issue of capital tax competition in source-based capital taxes is viewed to be unproblematic if residence-based capital taxation exists. The sustainability, however, of residence-based capital taxation depends on the co-operation of source countries to assist in collecting tax revenues that benefit the residence country. We analyze conditions under which information about foreign savings ar...

When individuals’ labor and capital income are subject to uninsurable idiosyncratic risks, should capital and labor be taxed, and if so how? In a two period general equilibrium model with production, we …rst show that reducing investment is welfare improving if households are homogeneous enough ex ante. On the other hand, when the degree of heterogeneity is su¢ ciently high a welfare improvemen...

This paper studies capital accumulation in a slightly altered, explicit OLG model. The fundamental difference with the standard model lies in the initial conditions. If a portion of the initial allocation of the capital stock is not assigned to retirees, the framework allowing for a genuine accumulation of capital is provided. Dynamic aspects of the resulting model are analyzed, including dynam...

Should capital and labor be taxed, and if so how when individuals’labor and capital income are subject to uninsurable idiosyncratic risks? In a two period general equilibrium model with production, we first show that reducing investment is welfare improving if households are homogeneous enough ex ante. On the other hand, when the degree of heterogeneity is suffi ciently high a welfare improveme...