Institutional Environment, Political Connection and Financial Constraints: Evidence from Private Listed Enterprises in China

Political connection is one of the hotly debated global issues in financial economics in recent years. However, very few studies have focused on political connection and financial constraints in enterprises operating in different institutional environments. China is known for its unique institutional environment and unbalanced regional economic growth. China's economy is in transition to market economy. The transition is led by the Chinese government. It is important to examine how political connection plays its role in enterprises to reduce financial constraints especially for their business expansion in China. Hence, this study examines the relationship between institutional1 environment, political connection and financial constraints of private listed enterprises in China. This study uses a sample of 3, 911 private listed enterprises in Shanghai and Shenzhen Stock Exchange Market. The data is obtained from WIND and CSMAR database for the period of 2008-2011. Multiple regression models are used to provide answers to the research questions developed in this study. The results show the existence of political connection and strength of such connection has significant influence on reducing enterprises' financial constraints, Political connection helps private listed enterprises access to bank credits, reduce their financial constraints, expand their business enterprises and promote private economic development in China. The findings also show that institutional environment has a significant positive effect in reducing financial constraints. In addition, institutional environment is found to have a moderating effect on the relationship between political connection and financial constraints. The most important contribution of this study is it expands current knowledge on the effect of institutional environment and political connection on private enterprises' financial constraints. This has policy implications for future government initiatives in strengthening the regulations to restrict political connection in order to achieve transformation of government governance, development of financial market and improving the legal system in China

Effective dynamicsof a coupled microscopic-macroscopic stochastic system

A conceptual model for microscopic-macroscopic slow-fast stochastic systems is considered. A dynamical reduction procedure is presented in order to extract effective dynamics for this kind of systems. Under appropriate assumptions, the effective system is shown to approximate the original system, in the sense of a probabilistic convergence.Comment: 14 page

Online Pricing Incentive to Sample Fresh Information

Today mobile users such as drivers are invited by content providers (e.g., Tripadvisor) to sample fresh information of diverse paths to control the age of information (AoI). However, selfish drivers prefer to travel through the shortest path instead of the others with extra costs in time and gas. To motivate drivers to route and sample diverse paths, this paper is the first to propose online pricing for a provider to economically reward drivers for diverse routing and control the actual AoI dynamics over time and spatial path domains. This online pricing optimization problem should be solved without knowing drivers' costs and even arrivals, and is intractable due to the curse of dimensionality in both time and space. If there is only one non-shortest path, we leverage the Markov decision process (MDP) techniques to analyze the problem. Accordingly, we design a linear-time algorithm for returning optimal online pricing, where a higher pricing reward is needed for a larger AoI. If there are a number of non-shortest paths, we prove that pricing one path at a time is optimal, yet it is not optimal to choose the path with the largest current AoI. Then we propose a new backward-clustered computation method and develop an approximation algorithm to alternate different paths to price over time. Perhaps surprisingly, our analysis of approximation ratio suggests that our algorithm's performance approaches closer to optimum given more paths.Comment: 14 pages, 13 figure

When Congestion Games Meet Mobile Crowdsourcing: Selective Information Disclosure

In congestion games, users make myopic routing decisions to jam each other, and the social planner with the full information designs mechanisms on information or payment side to regulate. However, it is difficult to obtain time-varying traffic conditions, and emerging crowdsourcing platforms (e.g., Waze and Google Maps) provide a convenient way for mobile users travelling on the paths to learn and share the traffic conditions over time. When congestion games meet mobile crowdsourcing, it is critical to incentive selfish users to change their myopic routing policy and reach the best exploitation-exploration trade-off. By considering a simple but fundamental parallel routing network with one deterministic path and multiple stochastic paths for atomic users, we prove that the myopic routing policy's price of anarchy (PoA) is larger than $\frac{1}{1-\rho}$, which can be arbitrarily large as discount factor $\rho\rightarrow1$. To remedy such huge efficiency loss, we propose a selective information disclosure (SID) mechanism: we only reveal the latest traffic information to users when they intend to over-explore the stochastic paths, while hiding such information when they want to under-explore. We prove that our mechanism reduces PoA to be less than $\frac{1}{1-\frac{\rho}{2}}$. Besides the worst-case performance, we further examine our mechanism's average-case performance by using extensive simulations.Comment: Online technical report for our forthcoming AAAI 2023 paper. 12 pages, 3 figure

Slow Manifolds for Multi-Time-Scale Stochastic Evolutionary Systems

This article deals with invariant manifolds for infinite dimensional random dynamical systems with different time scales. Such a random system is generated by a coupled system of fast-slow stochastic evolutionary equations. Under suitable conditions, it is proved that an exponentially tracking random invariant manifold exists, eliminating the fast motion for this coupled system. It is further shown that if the scaling parameter tends to zero, the invariant manifold tends to a slow manifold which captures long time dynamics. As examples the results are applied to a few systems of coupled parabolic-hyperbolic partial differential equations, coupled parabolic partial differential-ordinary differential equations, and coupled hyperbolic-hyperbolic partial differential equations

Difference or not to difference an integrated time series? An empirical investigation

This paper uses the gross domestic product growth rates of Malaysia, Thailand, Indonesia and China in an empirical examination to determine whether an integrated time series should be differenced before it is used for forecasting. The results reveal that Mallows model combination (M.M.A.) of original and differenced series is a better choice than just differencing the series only if the perturbation instability measure is more than 1.25 for autoregressive (A.R.) model, and 1.105 for moving average (M.A.) model and autoregressive fractional integrated moving average (A.R.F.I.M.A.) model. Furthermore, it is found that M.M.A. performs better in forecasting with better model stability for the case of M.A. and A.R.F.I.M.A. than A.R. However, M.M.A. is very sensitive in financial crisis

Access control for hybrid femtocell network based on AGV mechanism

As most of voice calls and data traffic originates indoors, femtocells have been one of the most promising trends in LTE, which are short-range, cost-beneficial and low-power cellular home base stations that can improve indoor coverage and voice/data quality of service (QoS). One of the major challenges for femtocell network is the access control. The hybrid access control mechanism, as a tradeoff between open and closed scenario, is the most promising access mechanism from which both users and operators benefit. Femtocell user equipments (FUEs) select femtocell access points (FAPs) according to their reported channel information which FAPs confidently own, and selfish FAPs have incentive to report larger information to win greater opportunity to be selected. Considering the aforementioned truth-telling in access control issue, this paper proposes access control scheme for hybrid femtocell network based on Arrow-d'Aspremont-Gerard-Varet (AGV) mechanism. Close form for the payment is given. Moreover, the access control scheme is nearly optimal performances with low computational complexity compared with the optimal access scheme. Furthermore, the simulation results demonstrate that the access control scheme can be apply to hybrid femtocell network. ? 2014 Global IT Research Institute (GIRI).EICPCI-S(ISTP)

Research on the mechanism of neutral-point voltage fluctuation and capacitor voltage balancing control strategy of three-phase three-level T-type inverter

In order to solve the neutral-point voltage fluctuation problem of three-phase threelevel T-type inverters (TPTLTIs), the unbalance characteristics of capacitor voltages under different switching states and the mechanism of neutral-point voltage fluctuation are revealed. Based on the mathematical model of a TPTLTI, a feed-forward voltage balancing control strategy of DC-link capacitor voltages error is proposed. The strategy generates a DC bias voltage using a capacitor voltage loop with a proportional integral (PI) controller. The proposed strategy can suppress the neutral-point voltage fluctuation effectively and improve the quality of output currents. The correctness of the theoretical analysis is verified through simulations. An experimental prototype of a TPTLTI based on Digital Signal Processor (DSP) is built. The feasibility and effectiveness of the proposed strategy is verified through experiment. The results from simulations and experiment match very well

Achieving China's energy and climate policy targets in 2030 under multiple uncertainties

The stringency of China's energy and climate targets in 2030 and the policy needed to realize these targets are full of controversy, mainly as a result of multiple future uncertainties. This study has developed a stochastic energy-economy-environment integrated model, to assess China's energy and climate targets in 2030, with a particular focus on the carbon intensity reduction, carbon emission peaking, and non-fossil energy development. The probabilities of realizing the targets are obtained, and the nexus among different targets is explored. It's argued that carbon emission management and policy-making should be implemented from the perspective of risk management, and policy makers can take corresponding policy measures based on the degree of confidence required under multiple future uncertainties. It is found that the probabilities of realizing carbon emission-peaking target and non-fossil energy target are low, with the business-as-usual efforts, and additional policies may still be needed. More specific, carbon pricing plays a major role in curbing and peaking carbon emissions, while the policy mix of carbon pricing and non-fossil energy subsidies can peak the carbon emission with relatively low cost compared to the single carbon pricing policy. It is also found that the carbon intensity reduction target is most likely to be attained, followed by the carbon-peaking target, and then the non-fossil energy target, given the same policy efforts. This indicates that, China may not deliberately increase carbon emissions rapidly over the next decade to make the carbon emission peak as high as possible; otherwise, it may be difficult to achieve the non-fossil energy target