Entry cost, financial friction, and cross-country differences in income and TFP

This paper develops a model to assess the quantitative effect of entry cost and financial friction on cross-country income and total factor productivity (TFP) differences. The main focus is on the interaction between entry cost and financial friction. The model is calibrated to match establishment-level statistics for the U.S. economy assuming a perfect financial market. The quantitative analysis shows that entry costs and financial frictions together can generate a factor ten of the differences in income per capita and a factor five of the differences in TFP, and a large part of the differences are accounted for by the interaction between entry cost and financial friction. The main mechanism is that financial friction amplifies the effect of entry cost by boosting the effective entry cost.

Entry barriers, competition, and technology adoption

There are large differences in income per capita across countries. Growth accounting finds that a large part of the differences comes from the differences in total factor productivity (TFP). This paper explores whether barrier to entry is an important factor for the cross-country differences in TFP. The paper develops a new model to link entry barriers and technology adoption. In the model, higher barriers to entry effectively reduce entry threat, and lower entry threat leads to adoption of less productive technologies. The paper demonstrates that technology adopted in the economy with entry threats is at least as good as the technology adopted in the economy without entry threats. Moreover, the paper presents numerical simulations that suggest entry barriers could be a quantitatively important reason for cross-country differences in TFP and are more harmful to productivity in the countries with monopolists facing inelastic demand.Productivity

Numerical study of ergodicity for the overdamped Generalized Langevin Equation with fractional noise

The Generalized Langevin Equation, in history, arises as a natural fix for the rather traditional Langevin equation when the random force is no longer memoryless. It has been proved that with fractional Gaussian noise (fGn) mostly considered by biologists, the overdamped Generalized Langevin equation satisfying fluctuation-dissipation theorem can be written as a fractional stochastic differential equation (FSDE). While the ergodicity is clear for linear forces, it remains less transparent for nonlinear forces. In this work, we present both a direct and a fast algorithm respectively to this FSDE model. The strong orders of convergence are proved for both schemes, where the role of the memory effects can be clearly observed. We verify the convergence theorems using linear forces, and then present the ergodicity study of the double well potentials in both 1D and 2D setups

Study of the heavy CP-even Higgs with mass 125 GeV in two-Higgs-doublet models at the LHC and ILC

We assume that the 125 GeV Higgs discovered at the LHC is the heavy CP-even Higgs of the two-Higgs-doublet models, and examine the parameter space in the Type-I, Type-II, Lepton-specific and Flipped models allowed by the latest Higgs signal data, the relevant experimental and theoretical constraints. Further, we show the projected limits on $\tan\beta$, $\sin(\beta-\alpha)$, $Hf\bar{f}$ and $HVV$ couplings from the future measurements of the 125 GeV Higgs at the LHC and ILC, including the LHC with integrated luminosity of 300 fb$^{-1}$ (LHC-300 fb$^{-1}$) and 3000 fb$^{-1}$ (LHC-3000 fb$^{-1}$) as well as the ILC at $\sqrt{s}=250$ GeV (ILC-250 GeV), $\sqrt{s}=500$ GeV (ILC-500 GeV) and $\sqrt{s}=1000$ GeV (ILC-1000 GeV). Assuming that the future Higgs signal data have no deviation from the SM expectation, the LHC-300 fb$^{-1}$, LHC-3000 fb$^{-1}$ and ILC-1000 GeV can exclude the wrong-sign Yukawa coupling regions of the Type-II, Flipped and Lepton-specific models at the $2\sigma$ level, respectively. The future experiments at the LHC and ILC will constrain the Higgs couplings to be very close to SM values, especially for the $HVV$ coupling.Comment: 22 pages, 3 tables, 6 figures. Version accepted for publication in JHE

A simplified 2HDM with a scalar dark matter and the galactic center gamma-ray excess

Due to the strong constrain from the LUX experiment, the scalar portal dark matter can not generally explain a gamma-ray excess in the galactic center by the annihilation of dark matter into $b\bar{b}$. With the motivation of eliminating the tension, we add a scalar dark matter to the aligned two-Higgs-doublet model, and focus on a simplified scenario, which has two main characteristics: (i) The heavy CP-even Higgs is the discovered 125 GeV Higgs boson, which has the same couplings to the gauge bosons and fermions as the SM Higgs. (ii) Only the light CP-even Higgs mediates the dark matter interactions with SM particles, which has no couplings to $WW$ and $ZZ$, but the independent couplings to the up-type quarks, down-type quarks and charged leptons. We find that the tension between $_{SS\to b\bar{b}}$ and the constraint from LUX induced by the scalar portal dark matter can go away for the isospin-violating dark matter-nucleon coupling with $-1.0< f^n/f^p<0.7$, and the constraints from the Higgs search experiments and the relic density of Planck are also satisfied.Comment: 12 pages, 3 figures, 1 table; reference adde