Abstract：General Secretary Xi Jinping stressed that Marxist political economy is an important part of Marxism, and a compulsory course for adherence to and development of Marxism, during the 28th group study of the Political Bureau of the Central Committee of the Communist Party of China. The purpose of this training session on Marxist political economy for leading cadres at the Academic Divisions of Economics and the Academy of Marxism, held by Chinese Academy of Social Sciences (CASS), is that, by studying the basic principles of Marxist political economy, all the economic researchers at CASS should study and implement seriously Comrade Xi Jinping’s important speech spirits; genuinely study, understand, believe in, and apply Marxist political economy; build the socialist political economy with Chinese characteristics, as well as innovate and development Marxist political economy.
Key Words：Marxist Political Economy; Socialism with Chinese Characteristics

Abstract：We propose an explanation for the allocation puzzle based on the life-cycle hypothesis-In 2-period overlapping generation model， ceteris paribus， a country with a higher growth rate registers larger excessive capital supply in autarky-Consequently， interest rates are lower in faster-growing countries-In an open world economy， capital then flows from faster-growing countries to countries growing more slowly-However， the strength of finance and the composition of trading partners can alter this relationship-Our empirical results find that this relationship not only holds at the global level， but also among developed countries when the average growth rates of their corresponding trading partners are controlled.
Key Words： The Allocation Puzzle; Current Accounts; Global Imbalances

Abstract： Considering two kinds of individual behaviors about the Ricardian and non-Ricardian residents， the paper builds a new Keynesian dynamic stochastic general equilibrium model to form a more systematic study framework about structural financial tools. The study finds that the macroeconomic effects of different financial instruments are significantly distinct. The tools should be evaluated differently and selected carefully while implementing financial macro-control. Also， simulation results show that the impact of tax-cutting is relatively better than expenditure expansion. The government should change the way of usual fiscal macro-control and gradually adjust from massive spending policy to structural tax-cutting policy on the occasion that the economy is slowing down， along with the expenditurebased stimulus policies working weakly. This paper argues that the government should further carry out the mode of publicprivate partnership， and spending priorities should be inclined to social security， health care， pension and public service as well， gradually promoting a more serviceoriented government operating style; tax policy should be based primarily on consumption taxcutting to effectively transform the demand structure of economy to a consumerdriven.
Key Words： The New Normal; Structural Regulations; New Keynesian Model; Fiscal Tools

Abstract：In a decentralized federation under implicit guarantee of appointment system， this paper constructs a game model comprising political incentive between central and local government， and decomposes local government’s bailout expectation. The results indicate that bailout expectation is affected by promotion evaluation pressure， self-supported cost share and bailout inclination of central government. Driven by motive of shirking responsibility， local government is committed to pass on debt obligation to the common pool. But the theoretical basis of the hypothesis of “too big to fail” is not suitable for China‘s debt expansion， regardless of population size or externality pressure. Conditioned by common foundation and unique financing environment， strategic debt financing aggravates term mismatch of asset and liability， which leads to imbalance distribution of debt service burden. But China has institutional advantage to control hidden liquidity risks. The transformation of governance pattern will harden budget constraint， which should be the way to manage China’s local government debt financing of post-crisis era.
Key Words：Bailout Expectation; Common Pool Incentive ; Strategic Debt Financing; China‘s Governance[JP] Pattern

Abstract：Avoiding bank runs and achieving a smooth transition of financial system in the process of promoting market-oriented interest rate are important theoretical and practical issues faced by transitional China. Based on the market environment considering multiple rounds noise information， this paper sets up a more generalized dynamic bank-runs model. By considering the depositors’ expectation of return on assets the bank holds， efficiency of information processing and communication as well as different types of early withdrawal motivation， this paper investigates the dynamic process of bank runs， deduces bank-runs proportion and numbers in each round， and characterizes the dynamic equilibrium. Furthermore， we extend the basic model by introducing deposit insurance system (DIS) to investigate the relationship between the implementation of DIS and bankruns. We show that DIS implementation would lead to two opposite effects， namely， formation of stable expectations and moral hazard through affecting depositors‘ two types of early withdrawal motivation. Implementation effect of DIS depends on comparison of these two effects， which in turn depends on the institutional environments. This paper also provides the following policy implications： when implementing DIS， it is necessary to establish and improve the corresponding institutions， strengthen market discipline and improve the bank’s internal governance mechanisms to reduce the potential moral hazard; moreover， it is also important to further deepen financial reform， improve the efficiency of information processing and dissemination， and prompt depositors to form stable withdrawal expectations to enhance the stabilization effect of DIS.
Key Words：Market-oriented Interest Rate; Deposit Insurance System; Bank Runs; Moral Hazard

Abstract：Based on the model of two cities， this article constructed a conceptual framework of firm productivity premium of big cities， and investigated how the selection effect， the sorting effect， the agglomeration effect and competition effect would lead to distribution differences of heterogeneous firm's productivity between cities; at the same time， using China's industrial firm level data during 1998—2007， this article explored the mystery of the firm's productivity premium of China's big cities empirically. In this article， it was found that： (1) the firm's productivity premium of China's big cities was due to the in the four forces of the agglomeration effect， the selection effect， the sorting effect and the competition effect， with different contribution for these four forces in different industries; (2) the agglomeration effect increased the productivity premium in most industries; (3) the competition effects did not necessarily lead to higher “inequality” of firm productivity in the big cities; (4) it existed the phenomenon of “water flows upwards” for the location choice of heterogeneous firms among the cities; (5) big cities did not necessarily have a higher market barriers to entry.
Key Words：Firm Productivity Premium; Heterogeneous Firm Location Choice; Selection Effect and Sorting Effect

Abstract：Many firm-level's evidence prove that productivity determines the mergers and acquisitions， so whether or how a country's overall productivity impact on a country's overall M&As activity？Based on the firm-micro characteristic of M&As decisions， we build a macro-factor model of domestic and cross-border M&As' completed numbers in a country; and through the model we can research how do domestic or host country's productivity， factor cost， market scale et al. to effect domestic company's’ M&As activity. Then we empirically test the model's predictions using China's M&As data from macro-data levels. The results prove that， in China， the growth of productivity promote domestic and cross-border M&As， and the domestic labor or capital cost， domestic market scale play the role on promoting domestic M&As， and the labor cost， market scale of host-country or the culture connection between home-host country can increase the home-country's cross-border M&As， and there are market timing in cross-border M&As activities. The research expand the literature about the relationship between productivity and overall M&As activity， and helps to understand the determinants of M&As and international capital flows.
Key Words：TFP; M&As; Foreign Direct Investment

Abstract：Due to increasing production fragmentation and trade liberalization， carbon accounting approach based on territorial responsibility principle shows inherent drawbacks on efficiency and equity. Carbon accounting based on responsibility-sharing principle has become a hot topic in climate economics. In the present paper， we firstly review briefly various carbon accounting approaches based on single and sharing responsibility principles. Secondly， based on multi-region input-output model and world inputoutput database， we assess and compare the carbon responsibilities of major economies based on various accounting approaches. Results show that all accounting approaches based on responsibility-sharing principle raise carbon responsibilities of the US， EU， and Japan， while most of them lower responsibilities of China， India， Russia， and Indonesia. Finally， we discuss the crucial problems which need to be solved to facilitate application of various responsibility sharing accounting approaches.
Key Words：Carbon Emissions Accounting; Production-based Emissions; Consumption-based Emissions; Responsibility-sharing Principle

Abstract：Based on the combined data of the input-output table， China's industrial firms and customs import-export data， this paper systematically analyzes the impact of servitization of manufacturing on the enterprise value chain upgrading. The results indicate： Firstly， servitization of manufacturing encourages China's firms to participate in global value chain， and raise the China firm's status of global value chain.From the perspective of the heterogeneity of service factor input， value chain upgrade effect of transport servitization， financial servitization and distribution servitization is more obvious.While value chain upgrade effect of telecom servitization is not significant， so policy makers need to pay more attention to reform process of telecom servitization; Secondly， using the micro enterprise data， we investigates the impact of product upgrade by servitization of manufacturing. The results show that servitization of manufacturing improves the quality of export enterprise products by vertical effect (product quality) and horizontal effect (product technical complexity). Trans-provincial service factor input has important impact on the enterprise product upgrading. Servitization of manufacturing is the key for China export firms to break the low-end locking of value chain and establish new advantages of export competition in the period of Chinese economic transition.
Key Words：Servitization of Manufacturing; Global Value Chain; Product Upgrade; Heckman Model

Abstract：Modern theory of international trade (Melitz， 2003) predicts a stable export activity once comparative advantage justifies it or once the sunk cost of such an activity is paid for. Therefore， using Chinese firm-transaction level export data， we study the dynamic evolution of firm’s export margin from the perspective of migration. We find that migrant networks significantly reduce the uncertainty in export markets， which can greatly improve the growth rate of export value at the intensive margin and the survival rate of new activities at the extensive margin. Moreover， the influence is higher for differentiated products than for homogenous ones， greater for private enterprises than for state-owned ones， and larger for enterprises in South China than in East China. The results are robust and in line with theoretical predictions. This paper has high documentary value by expanding the basic assumption named deterministic world of the international trade theory， and is helpful for further understanding of China‘s trade growth.
Key Words：Migrant Networks; Uncertainty; Export Margins

Abstract：Based on panel data analysis and instrumental variables methods， this paper used data from the 1991—2011 China Health and Nutrition Survey to examine the influence of informal care on labor market outcomes for a cohort of working-aged women. We found that potential endogeneity existed between caregiving and labor force participation and early retirement. Threshold effect existed for caregivers who provided more than 20 hours of caregiving per week. Hence， they were 7.31% less likely to be in the labor force participation. For caregivers who remained working， there was a significant 2.8—4.8 hours reduction in hours of work each week and were 34.8% lower in wages than non-caregivers. For urban caregivers between 45—49 years old， caregiving did not significantly increase the probability of their early retirement. We found that substantial heterogeneity of the impact of caregiving on work. In particular， caregivers living with parents and without strong market competiveness were influenced much more strongly due to caregiving. Therefore， informal care might act as a disincentive to women’s labor supply. These findings provide evidences for developing policies associated with health aging and employment.
Key Words：Informal Care; Labor Force Participation; Income