Limiting Government Predation through Anonymous Banking: A Theory and Evidence from China

No abstract.

Governance and foreign direct investment: is there a two-way relationship?

The issue of economic governance is highly discussed pertaining to the question of industrialisation of a country, yet the literature on international trade and foreign direct investment (FDI) hardly pays attention to this aspect. We show that higher investment in economic governance attracts FDI. However, whether the possibility of FDI induces more investment in governance is not immediate, and depends on the factors such as the marginal cost difference between the firms, the international transportation cost and the cost of FDI. Our results suggest that we may expect a two-way relationship between investment in economic governance and inward FDI in more technologically backward domestic countries. However, a less technologically backward domestic country may have a strategic reason for relatively poor economic governance in order to prevent FDI, if we control for other benefits from FDI, such as knowledge spillover and domestic employment generation.Foreign direct investment; Governance; Welfare

Limiting Government Predation Through Anonymous Banking: A Theory with Evidence from China

China's economic performance of the past two decades presents a puzzle for the economics of transition and development: Enormous private business incentives were unleashed that have fueled rapid economic growth despite the fact that China has had very weak "conventional institutions" (such as the rule of law and separation of powers) to constrain the government from arbitrary intrusion into economic activities. We argue that one mechanism that has limited the government's ability for predation and harassment is commitment through information decentralization, where the key institutiton is "anonymous banking," that is, a combination of the use of cash for transactions and the use of anonymous savings deposits. The government's incentive for such a mechanism comes form the increased quasi-fiscal revenues collected from the state banking system through "financial repression," a combination of controls on international capital flows with restrictions on domestic interest rates. The major features of China's economy concerning its fiscal decline, financial deepening, and the sectoral dual-track can be better understood using this analytical framework.http://deepblue.lib.umich.edu/bitstream/2027.42/39659/3/wp275.pd

Limiting Government Predation Through Anonymous Banking: A Theory with Evidence from China

China's economic performance of the past two decades presents a puzzle for the economics of transition and development: Enormous private business incentives were unleashed that have fueled rapid economic growth despite the fact that China has had very weak "conventional institutions" (such as the rule of law and separation of powers) to constrain the government from arbitrary intrusion into economic activities. We argue that one mechanism that has limited the government's ability for predation and harassment is commitment through information decentralization, where the key institutiton is "anonymous banking," that is, a combination of the use of cash for transactions and the use of anonymous savings deposits. The government's incentive for such a mechanism comes form the increased quasi-fiscal revenues collected from the state banking system through "financial repression," a combination of controls on international capital flows with restrictions on domestic interest rates. The major features of China's economy concerning its fiscal decline, financial deepening, and the sectoral dual-track can be better understood using this analytical framework.

Rare Earth Elements Purification using Ligand-Assisted Displacement Chromatography

Rare Earth Elements (REEs) including the lanthanide series, Yttrium, and Scandium play a critical and essential role in various industries such as electronics, power, and defense. Traditional methods have difficulties in separating REEs due to their high similarities in chemical and physical properties. With increasing demand of REEs, current industrial techniques of REE extractions, two phase liquid-liquid extraction, are not efficient enough to meet the market’s need without causing serious environmental problems. Specifically, two phase liquid-liquid extraction uses a large number of mixer-settler units in series and parallel for purification of REEs. This method consumes excessive solvents and chemicals that are environmentally hazardous. Spedding and Powell studied ligand-assisted displacement chromatography of REE recovery in 1950’s, which showed high yields and high purity but low productivity. Their process was designed based on trials and errors and was not optimized. The first goal of this study is to develop and test a systematic design and optimization method to increase sorbent productivity and reduce separation cost. The second goal is to understand the dynamic separation mechanism using rate model simulations. We tested the design method experimentally using three REEs, Nd, Sm and Pr. Ammonium citrate was used as a ligand displacer. Frontal tests were used to estimate the various parameters corresponding to adsorption, reaction and mass transfer. Rate model simulations were conducted to verify experimental data. The experimental design aimed to achieve an average yield of each product of 97% with a purity of 99%, and sorbent productivity an order of magnitude higher than that of Spedding and Powell

Determining the local dark matter density with LAMOST data

Measurement of the local dark matter density plays an important role in both Galactic dynamics and dark matter direct detection experiments. However, the estimated values from previous works are far from agreeing with each other. In this work, we provide a well-defined observed sample with 1427 G \& K type main-sequence stars from the LAMOST spectroscopic survey, taking into account selection effects, volume completeness, and the stellar populations. We apply a vertical Jeans equation method containing a single exponential stellar disk, a razor thin gas disk, and a constant dark matter density distribution to the sample, and obtain a total surface mass density of $\rm {78.7 ^{+3.9}_{-4.7}\ M_{\odot}\ pc^{-2}}$up to 1 kpc and a local dark matter density of$0.0159^{+0.0047}_{-0.0057}\,\rm M_{\odot}\,\rm pc^{-3}$. We find that the sampling density (i.e. number of stars per unit volume) of the spectroscopic data contributes to about two-thirds of the uncertainty in the estimated values. We discuss the effect of the tilt term in the Jeans equation and find it has little impact on our measurement. Other issues, such as a non-equilibrium component due to perturbations and contamination by the thick disk population, are also discussed.Comment: 11 pages, 10 figure

A Comparison of LSM, LSF, and LSCo for Solid Oxide Electrolyzer Anodes

Composite electrodes of yttria-stabilized zirconia (YSZ) with La0.8Sr0.2MnO3 (LSM), La0.8Sr0.2FeO3 (LSF), and La0.8Sr0.2CoO3 (LSCo) were prepared and tested as solid oxide electrolyzer (SOE) anodes and solid oxide fuel cell (SOFC) cathodes at 973 K, using cells with a YSZ electrolyte and a Co-ceria-YSZ counter electrode. The LSM-YSZ electrode was activated by cathodic polarization but the enhanced performance was found to be unstable during electrolysis, with the electrode impedance increasing to near its unenhanced state after 24 h. LSF-YSZ and LSCo-YSZ electrodes exhibited a nearly constant impedance, independent of current density, during both SOE and SOFC operation. The performance of an LSF-YSZ composite for electrolysis current densities above 200 mA/cm2 was unaffected by changing the O2 partial pressure from ~10–2 to 1 atm, while the lower O2 pressure harmed the performance of the LSCo-YSZ composite. The implications of these results for the characterization and optimization of SOE anodes is discussed

Ecological functions of uncultured microorganisms in the cobalt-rich ferromanganese crust of a seamount in the central Pacific are elucidated by fosmid sequencing

Author Posting. © The Author(s), 2014. This is the author's version of the work. It is posted here by permission of Springer for personal use, not for redistribution. The definitive version was published in Acta Oceanologica Sinica 34 (2015):92-113, doi:10.1007/s13131-015-0650-7.Cobalt-rich ferromanganese is an important seafloor mineral and is abundantly present in the seamount crusts. Such crusts form potential hotspots for biogeochemical activity and microbial diversity, yet our understanding of their microbial communities is lacking. In this study, we used a cultivation-independent approach to recover genomic information and derive ecological functions of the microbes in a sediment sample collected from the cobalt-rich ferromanganese crust of a seamount region in the central Pacific. A total of 78 distinct clones were obtained by fosmid library screening with a 16S rRNA based PCR method. Proteobacteria and MGI Thaumarchaeota dominated the bacterial and archaeal 16S rRNA gene sequence results in the microbial community. Nine fosmid clones were sequenced and annotated. Numerous genes encoding proteins involved in metabolic functions and heavy metal resistance were identified, suggesting alternative metabolic pathways and stress responses that are essential for microbial survival in the cobalt-rich ferromanganese crust. In addition, genes that participate in the synthesis of organic acids and exoploymers were discovered. Reconstruction of the metabolic pathways revealed that the nitrogen cycle is an important biogeochemical process in the cobalt-rich ferromanganese crust. In addition, horizontal gene transfer (HGT) events have been observed, and most of them came from bacteria, with some occurring in archaea and plants. Clone W4-93a, belonging to MGI Thaumarchaeota, contained a region of gene synteny. Comparative analyses suggested that a high frequency of HGT events as well as genomic divergence play important roles in the microbial adaption to the deep-sea environment.China Ocean Mineral Resources R & D Association (COMRA) Special Foundation (No. DY125-15-R-03 and DY125-13-E-01); the National Natural Science Foundation of China (No. 41276173); the Zhejiang Provincial Natural Science Foundation of China (No. LQ13D060002) and the Scientific Research Fund of the Second Institute of Oceanography, SOA (No. JT1305).2016-04-1