Ownership Characteristics, Real Exchange Rate Movements and Labor Market Adjustment in China

This paper uses a firm level multi-industry data set covering 456 Chinese manufacturing sectors to assess the implications of Renminbi (RMB) real exchange rate appreciation for adjustments in employment and wage rates. We stress differences in both industry and firm characteristics within sectors. Our empirical results show that modest (and also larger) RMB real exchange rate appreciation would likely have pronounced effects on both net employment and wage rates. A 10% RMB appreciation would likely cause a net employment decline in Chinese manufacturing industries of between 4.1% and 5.3%, and a wage rate drop of 4% after controlling for other factors. Real exchange rate change effects by industry on net employment and wage rates vary significantly with the ownership characteristics of firms within industries. Employment and wage rates for private enterprises are less responsive to RMB real exchange rate fluctuations than is true for state owned enterprises (SOEs) and foreign invested enterprises (FIEs). This finding is opposite to the widely held belief that the labor market behavior of Chinese SOEs shows stronger labor market rigidities than for private firms. Impacts of exchange rate movements emerge as systematically related to export openness, overall import penetration and profit margins of individual manufacturing industries.

Linearized Alternating Direction Method with Parallel Splitting and Adaptive Penalty for Separable Convex Programs in Machine Learning

Many problems in machine learning and other fields can be (re)for-mulated as linearly constrained separable convex programs. In most of the cases, there are multiple blocks of variables. However, the traditional alternating direction method (ADM) and its linearized version (LADM, obtained by linearizing the quadratic penalty term) are for the two-block case and cannot be naively generalized to solve the multi-block case. So there is great demand on extending the ADM based methods for the multi-block case. In this paper, we propose LADM with parallel splitting and adaptive penalty (LADMPSAP) to solve multi-block separable convex programs efficiently. When all the component objective functions have bounded subgradients, we obtain convergence results that are stronger than those of ADM and LADM, e.g., allowing the penalty parameter to be unbounded and proving the sufficient and necessary conditions} for global convergence. We further propose a simple optimality measure and reveal the convergence rate of LADMPSAP in an ergodic sense. For programs with extra convex set constraints, with refined parameter estimation we devise a practical version of LADMPSAP for faster convergence. Finally, we generalize LADMPSAP to handle programs with more difficult objective functions by linearizing part of the objective function as well. LADMPSAP is particularly suitable for sparse representation and low-rank recovery problems because its subproblems have closed form solutions and the sparsity and low-rankness of the iterates can be preserved during the iteration. It is also highly parallelizable and hence fits for parallel or distributed computing. Numerical experiments testify to the advantages of LADMPSAP in speed and numerical accuracy.Comment: Preliminary version published on Asian Conference on Machine Learning 201

Juan de Fuca subduction zone from a mixture of tomography and waveform modeling

Seismic tomography images of the upper mantle structures beneath the Pacific Northwestern United States display a maze of high-velocity anomalies, many of which produce distorted waveforms evident in the USArray observations indicative of the Juan de Fuca (JdF) slab. The inferred location of the slab agrees quite well with existing contour lines defining the slab's upper interface. Synthetic waveforms generated from a recent tomography image fit teleseismic travel times quite well and also some of the waveform distortions. Regional earthquake data, however, require substantial changes to the tomographic velocities. By modeling regional waveforms of the 2008 Nevada earthquake, we find that the uppermost mantle of the 1D reference model AK135, the reference velocity model used for most tomographic studies, is too fast for the western United States. Here, we replace AK135 with mT7, a modification of an older Basin-and-Range model T7. We present two hybrid velocity structures satisfying the waveform data based on modified tomographic images and conventional slab wisdom. We derive P and SH velocity structures down to 660 km along two cross sections through the JdF slab. Our results indicate that the JdF slab is subducted to a depth of 250 km beneath the Seattle region, and terminates at a shallower depth beneath Portland region of Oregon to the south. The slab is about 60 km thick and has a P velocity increase of 5% with respect to mT7. In order to fit waveform complexities of teleseismic Gulf of Mexico and South American events, a slab-like high-velocity anomaly with velocity increases of 3% for P and 7% for SH is inferred just above the 660 discontinuity beneath Nevada

Upper mantle P velocity structure beneath the Midwestern United States derived from triplicated waveforms

Upper mantle seismic velocity structures in both vertical and horizontal directions are key to understanding the structure and mechanics of tectonic plates. Recent deployment of the USArray Transportable Array (TA) in the Midwestern United States provides an extraordinary regional earthquake data set to investigate such velocity structure beneath the stable North American craton. In this paper, we choose an M_w5.1 Canadian earthquake in the Quebec area, which is recorded by about 400 TA stations, to examine the P wave structures between the depths of 150 km to 800 km. Three smaller Midwestern earthquakes at closer distance to the TA are used to investigate vertical and horizontal variations in P velocity between depths of 40 km to 150 km. We use a grid-search approach to find the best 1-D model, starting with the previously developed S25 regional model. The results support the existence of an 8° discontinuity in P arrivals caused by a negative velocity gradient in the lithosphere between depths of 40 km to 120 km followed by a small (∼1%) jump and then a positive gradient down to 165 km. The P velocity then decreases by 2% from 165 km to 200 km, and we define this zone as the regional lithosphere-asthenosphere boundary (LAB). Beneath northern profiles, waves reflected from the 410 discontinuity (410) are delayed by up to 1 s relative to those turning just below the 410, which we explain by an anomaly just above the discontinuity with P velocity reduced by ∼3%. The 660 discontinuity (660) appears to be composed of two smaller velocity steps with a separation of 16 km. The inferred low-velocity anomaly above 410 may indicate high water concentrations in the transition zone, and the complexity of the 660 may be related to Farallon slab segments that have yet to sink into the deep mantle

Determination of earthquake focal depths and source time functions in central Asia using teleseismic P waveforms

We developed a new method to determine earthquake source time functions and focal depths. It uses theoretical Green's function and a time-domain deconvolution with positivity constraint to estimate the source time function from the teleseismic P waveforms. The earthquake focal depth is also determined in the process by using the time separations of the direct P and depth phases. We applied this method to 606 earthquakes between 1990 and 2005 in Central Asia. The results show that the Centroid Moment Tensor solutions, which are routinely computed for earthquake larger than M5.0 globally using very long period body and surface waves, systematically over-estimated the source depths and durations, especially for shallow events. Away from the subduction zone, most of the 606 earthquakes occurred within the top 20 km of crust. This shallow distribution of earthquakes suggests a high geotherm and a weak ductile lower crust in the region