The Financial Deepening-Productivity Nexus in China: 1987-2001

The financial intermediation-growth nexus is a widely studied topic in the literature of development economics. Deepening financial intermediation may promote economic growth by mobilizing more investments, and lifting returns to financial resources, which raises productivity. Relying on provincial panel data from China, this paper attempts to examine if regional productivity growth is accounted for by the deepening process of financial development. Towards this end, an appropriate measurement of financial depth is constructed and then included as a determinant of productivity growth. It finds that a significant and positive nexus exists between financial deepening and productivity growth. Given the divergent pattern of financial deepening between coastal and inland provinces, this finding also helps explain the rising regional disparity in China.growth, financial development, productivity, China

Inducing Effect on the Percolation Transition in Complex Networks

Percolation theory concerns the emergence of connected clusters that percolate through a networked system. Previous studies ignored the effect that a node outside the percolating cluster may actively induce its inside neighbours to exit the percolating cluster. Here we study this inducing effect on the classical site percolation and K-core percolation, showing that the inducing effect always causes a discontinuous percolation transition. We precisely predict the percolation threshold and core size for uncorrelated random networks with arbitrary degree distributions. For low-dimensional lattices the percolation threshold fluctuates considerably over realizations, yet we can still predict the core size once the percolation occurs. The core sizes of real-world networks can also be well predicted using degree distribution as the only input. Our work therefore provides a theoretical framework for quantitatively understanding discontinuous breakdown phenomena in various complex systems.Comment: Main text and appendices. Title has been change

Number-resolved master equation approach to quantum transport under the self-consistent Born approximation

We construct a particle-number(n)-resolved master equation (ME) approach under the self-consistent Born approximation (SCBA) for quantum transport through mesoscopic systems. The formulation is essentially non-Markovian and incorporates the interlay of the multi-tunneling processes and many-body correlations. The proposed n-SCBA-ME goes completely beyond the scope of the Born-Markov master equation, being applicable to transport under small bias voltage, in non-Markovian regime and with strong Coulomb correlations. For steady state, it can recover not only the exact result of noninteracting transport under arbitrary voltages, but also the challenging nonequilibrium Kondo effect. Moreover, the n-SCBA-ME approach is efficient for the study of shot noise.We demonstrate the application by a couple of representative examples, including particularly the nonequilibrium Kondo system.Comment: arXiv admin note: substantial text overlap with arXiv:1302.638