WORKING PAPER SERIES


No. 75
Asset Pricing Specification Errors and Performance Evaluation
Jia He, Lilian Kheng-lian Ng (CityU) and Chu Zhang (University of Alberta)
(February 1996)


No. 76
The Changing Economic Environment in People's Republic of China
Kui-wai Li (CityU)
(March 1996)


No. 77
The Productivity of Financial Capital in China's Economic Reform: A Simple Regression Analysis
Kui-wai Li (CityU)
(March 1996)


No. 78
Some Thoughts on China's 1995 Bank Reform
Kui-wai Li (CityU)
(May 1996)


No. 79
Bid-Ask Spread and Arbitrage Profitability: A Study of the Hong Kong Index Futures and Options Market
Kee-hong Bae (CityU), Kalok Chan (Hong Kong University of Science & Technology and Arizona State University) and Stephen Yan-leung Cheung (CityU)
(May 1996)


No. 80
The Performance of Trading Rules on Four Asian Currency Exchange Rates
Yin-wong Cheung (University of California at Santa Cruz) and Clement Yuk-pang Wong (CityU)
(June 1996)


No. 81
International Evidence on the Stock Market and Aggregate Economic Activity
Yin-wong Cheung (University of California) and Lilian Kheng-lian Ng (CityU)
(June 1996)


No. 82
Decision Rights, Residual Claim and Performance: A Theory of How the Chinese State Enterprise Reform Works
Weiying Zhang (Peking University and CityU)
(June 1996)


No. 83
An Analysis of Import Protection as Export Promotion
Anming Zhang (University of Victoria and CityU) and Yimin Zhang (University of New Brunswick)
(June 1996)

No. 84
An Analysis of Fortress Hubs in Airline Networks
Anming Zhang (University of Victoria and CityU)
(June 1996)


No. 85
The Effects of Airline Codesharing Agreements on Firm Conduct and International Air Fares
Tae-hoon Oum, Jong-hun Park (University of British Columbia) and Anming Zhang (CityU)
(June 1996)


No. 86
On Existence of an "Optimal Stock Price": Evidence from Stock Splits and Reverse Stock Splits in Hong Kong
Lifan Wu and Bob Yau-ching Chan (CityU)
(June 1996)


No. 87
Stability of Nash Equilibrium: The Multiproduct Case
Anming Zhang (University of Victoria and CityU) and Yimin Zhang (University of New Brunswick)
(June 1996)


No. 88
Further Investigation of the Uncertain Unit Root in GNP
Yin-wong Cheung (University of California and CityU) and Menzie D. Chinn (University of California)
(July 1996)


No. 89
A New Stochastic Duration Measure by the Vasicek and CIR Term Structure Theories
Xueping Wu (CityU)
(July 1996)


No. 90
Stock Market Volatility and Fractional Integration
Yin-Wong Cheung (University of California and CityU)
(July 1996)


No. 91
Money, Inflation and Growth
Keith Blackburn (University of Manchester) and Victor Tin-yau Hung (CityU)
(August 1996)


No. 92
Effects of Merger and Foreign Alliance: An Event Study of the Canadian Airline Industry
Anming Zhang (CityU and University of Victoria) and Derek Aldridge (University of Victoria)
(August 1996)


No. 93
The Invariance of Best Reply Correspondences in Two-Player Games
Andy Luchuan Liu (CityU)
(October 1996)


No. 94
The Patent Act and the Pricing of Ethical Drugs in Canada: Some Empirical Evidence
from British Columbia, 1981-1994
J. Colin H. Jones (University of Victoria) and Anming Zhang (CityU and University of Victoria)
(January 1997)


No. 95
A Theory of Growth, Financial Development and Trade
Keith Blackburn (University of Manchester) and Victor Tin-yau Hung (CityU)
(January 1997)


No. 96
Foreign Exchange Exposure, Risk and the Japanese Stock Market
Jia He (Chinese University of Hong Kong), Lilian Kheng-lian Ng and Xueping Wu (CityU)
(January 1997)


No. 97
Optimal Demand for Operating Lease of Aircraft
Tae-hoon Oum (University of British Columbia), Anming Zhang (CityU and University
of Victoria) and Yimin Zhang (University of New Brunswick)
(February 1997)


No. 98
A Principal-agent Theory of the Public Economy
Weiying Zhang (Peking University and CityU)
(April 1997)


No. 99
Capital Structure and Socially Optimal Capacity in Oligopoly: The Case of Airline Industry
Tae-hoon Oum (University of British Columbia), Anming Zhang (CityU and University
of Victoria) and Yimin Zhang (University of New Brunswick)
(April 1997)


No. 100
Horizontal Mergers in an Open Economy
Anming Zhang (CityU and University of Victoria)
(April 1997)


No. 101
An Analysis of Import Protection as Export Promotion under Economies of Scale
Anming Zhang (CityU and University of Victoria) and Yimin Zhang (University of New Brunswick)
(April 1997)


No. 102
The Performance of Trading Rules on Four Asian Currency Exchange Rates
Yin-Wong Cheung (University of California and CityU) and Clement Yuk-Pang Wong (CityU)
(May 1997)


No. 103
Individual Learning in Normal Form Games: Some Laboratory Results
Yin-Wong Cheung (University of California and CityU) and Daniel Friedman (University of California)
(May 1997)


No. 104
Bandwidth Selection, Prewhitening and the Power of the Phillips-Perron Test
Yin-Wong Cheung (University of California and CityU) and Kon S. Lai (California State University)
(May 1997)


No. 105
Foreign Exchange Markets in Hong Kong, Tokyo, and Singapore
Yin-Wong Cheung (University of California and CityU) and Clement Yuk-Pang Wong (CityU)
(May 1997)


No. 106
On Cross-Country Differences in the Persistence of Real Exchange Rates
Yin-Wong Cheung (University of California and CityU) and Kon S. Lai (California State University)
(May 1997)


No. 107
Macroeconomic Determinants of Long-Term Stock Market Comovements Among Major EMS Countries
Yin-Wong Cheung (University of California and CityU) and Kon S. Lai (California State University)
(May 1997)


No. 108
Parity revision in real exchange rates during the post-Bretton Woods period
Yin-Wong Cheung (University of California and CityU) and Kon S. Lai (California State University)
(May 1997)


No. 109
Why Are Entrepreneurs Liquidity Constrained?
Weiying Zhang (Peking University and CityU)
(June 1997)


No. 110
China's Financial Reform: The Relation between State Banks and State Enterprises
Edgardo Barandiaran (The World Bank and CityU)
(July 1997)


No. 111
Concession Revenue and Optimal Airport Pricing
Anming Zhang (CityU and University of Victoria) and Yimin Zhang (CityU and University of New Brunswick)
(August 1997)


No. 112
The Optimal Number of Contracts in Cross- or Delta-Hedges
Piet Sercu (University of Leuven) and Xueping Wu (CityU)
(October 1997)


No. 113
Reliability Differentiation of Electricity Transmission
Chi-Keung Woo (Energy and Environmental Economics), Ira Horowitz (University of Florida and CityU) and Jennifer Martin (Energy and Environmental Economics)
(November 1997)


No. 114
Conditional Multifactor Explanation of Return Momentum
Xueping Wu (CityU)
(February 1998)


No. 115
Industrial Reform and Air Transport Development in China
Anming Zhang (CityU and University of Victoria)
(April 1998)


No. 116
On the Effects of Strategic Alliances on Partners' Output
Jong-hun Park (CityU) and Anming Zhang (CityU and University of Victoria)
(April 1998)


No. 117
Competition and Institutional Change: Privatization in China
Shaomin Li (CityU), Shuhe Li (CityU) and Weiying Zhang (Peking University)
(May 1998)


No. 118
Corruption and Contract Enforcement
Shuhe Li and Victor Tin-yau Hung (CityU)
(May 1998)


No. 119
Options on the Minimum or the Maximum of Two Average Prices
Xueping Wu and Jin E. Zhang (CityU)
(July 1998)


No. 120
An Empirical Analysis of Global Airline Alliances: Cases in North Atlantic Markets
Jong-hun Park (CityU) and Anming Zhang (CityU and University of Victoria)
(August 1998)


No. 121
Housing Choice Behavior of Urban Workers in China's Transition to Housing Market
Yuming Fu (CityU), David Tse (HKU) and Nan Zhou (CityU)
(October 1998)


No. 122
What are the Determinants of the Location of Foreign Direct Investment? The Chinese Experience
Leonard K. Cheng (HKUST) and Yum K. Kwan (CityU)
(January 1999)


No. 123
The Location of Foreign Direct Investment in Chinese Regions: A Further Analysis
Leonard K. Cheng (HKUST) and Yum K. Kwan (CityU)
(January 1999)


No. 124
Optimal Bidding and Contracting Strategies for Non-storable Commodities
D.J. Wu (Drexel University), Paul R. Kleindorfer (University of Pennsylvania) and Jin E. Zhang (CityU)
(March 1999)


No. 125
Deregulation, Profit, and Cost in Commercial Banking: The Case of Hong Kong
Yum K. Kwan (CityU) and Francis T. Lui (HKUST)
(April 1999)


No. 126
How Well Has the Currency Board Performed? Evidence from Hong Kong
Yum K. Kwan (CityU) and Francis T. Lui (HKUST)
(April 1999)


No. 127
Arithmetic Asian Options with Continuous Sampling
Jin E. Zhang (CityU)
(May 1999)


No. 128
Risk Premium, Currency Board, and Attacks on the Hong Kong Dollar
Leonard K. Cheng (HKUST), Yum K. Kwan (CityU) and Francis T. Lui (HKUST)
(May 1999)


No. 129
An Alternative Approach to Defending The Hong Kong Dollar
Leonard K. Cheng (HKUST), Yum K. Kwan (CityU) and Francis T. Lui (HKUST)
(May 1999)


No. 130
Optimal Bidding and Contracting Strategies in Supply Chains for Non-storable Goods
D.J. Wu (Drexel University), Paul R. Kleindorfer (University of Pennsylvania) and Jin E. Zhang (CityU)
(June 1999)


No. 131
Credibility of Hong Kong's Currency Board: The Role of Institutional Arrangements
Y.K. Kwan (CityU), Francis T. Lui and Leonard K. Cheng (HKUST)
(August 1999)


No. 132
A New Default Swap Valuation Formula
Wai-yan Cheng (CityU)
(September 1999)


No. 133
The Effects of Exogenous Price Shocks on Manufacturing Industries in Small Open Economies: A Production Theory Approach
To-ming Ho (CityU)
(June 2000)

No. 134
Intellectual Property Rights Protection and Endogenous Economic Growth
Yum K. Kwan and Edwin Lun-cheung Lai (CityU)
(July 2000)

No. 135
Currency Board, Asian Financial Crisis, and the Case for Structured Notes
Francis T. Lui, Leonard K. Cheng (HKUST) and Yum K. Kwan (CityU)
(July 2000)

No. 136
The Benefits and Costs of Relation-based Governance: An Explanation of the East Asian Miracle and Crisis
Shuhe Li (CityU)
(October 2000)

No. 137
Determinants of Private Sector Development in Chinese Industry
Shuhe Li (CityU)
(October 2000)

No. 138
Recovery of Implied Volatility: An Optimal Control Approach
Lishang Jiang (Tongji University) , Qihong Chen (Shanghai Normal University),
Lijun Wang (Tongji University) and Jin E. Zhang (CityU)
(October 2000)

No. 139
A Disturbance Attenuation Approach to Option Pricing with Transaction Costs
Lihui Zheng (Tongji University) and Jin E. Zhang (CityU)
(October 2000)

No. 140
Theory of Continuously-sampled Asian Option Pricing
Jin E. Zhang (CityU)
(November 2000)

No. 141
Impact of Ownership and Competition on the Productivity of Chinese Enterprises
Anming Zhang, Yimin Zhang and Ronald Zhao (CityU)
(April 2001)

No. 142
(Also International Economics Working Paper No. 2001-1)
The Impact of Joining WTO on China’s Economic, Legal and Political Institutions
Gregory C. Chow (Princeton University)
(September 2001)

No. 143
(Also International Economics Working Paper No. 2001-2)
China and the WTO: The Impact on China and the World Economy
Arjan Lejour (CPB, Netherlands Bureau for Economic Policy Analysis) 
(September 2001)

No. 144
(Also International Economics Working Paper No. 2001-3)
China's WTO Accession and Implications for Its Regional Economies
Fan Zhai and Shantong Li (Development Research Center of the State Council)
(September 2001)

No. 145
(Also International Economics Working Paper No. 2001-4)
Foreign Entry into Chinese Banking: Does WTO Membership Threaten Domestic Banks?
John P. Bonin (Wesleyan University) and Yiping Huang (Salomon Smith Barney and Citibank)
(September 2001)

No. 146
(Also International Economics Working Paper No. 2001-5)
China’s Gradualism in Banking Reform
Wai-chung Lo (OUHK)
(September 2001)

No. 147
(Also International Economics Working Paper No. 2001-6)
China’s WTO Accession and Policy Options for Banking Reform
Kui-wai Li (CityU) and Jun Ma (Deutsche Bank Hong Kong)
(September 2001)

No. 148
(Also International Economics Working Paper No. 2001-7)
GMOs and World Trade: Implications for China as a WTO Member
Kym Anderson and Shunli Yao (University of Adelaide)
(September 2001)

No. 149
(Also International Economics Working Paper No. 2001-8)
The Sectoral Impact of China’s Access to the WTO ?A Dynamic CGE Analysis
Xuesong Li (Chinese Academy of Social Sciences) and Arjan Lejour (CPB, Netherlands Bureau for Economic Policy Analysis)
(September 2001)

No. 150
(Also International Economics Working Paper No. 2001-9)
The Impact of China’s Trade Liberalization for WTO Accession ?A Computable General Equilibrium Analysis
Mingtai Fan and Yuxin Zheng (Chinese Academy of Social Sciences)
(September 2001)

No. 151
(Also International Economics Working Paper No. 2001-10)
Capital Account Liberalization, Currency Markets?Volatility and Prediction: Financial Implications of the P.R. of China’s Accession to the WTO
Abdol S. Soofi (University of Wisconsin-Milwaukee) and Liangyue Cao (Australian Bureau of Agricultural and Resource Economics)
(September 2001)

No. 152
(Also International Economics Working Paper No. 2001-11)
China's Accession to the WTO, Real Exchange Rate Changes and their Impact on U.S. Trade with Greater China
Vincent Dropsy (California State University)
(September 2001)

No. 153
(Also International Economics Working Paper No. 2001-12)
Assessing the Impact of China’s WTO Accession on Foreign Investment?
Terrie L. Walmsley (University of Sheffield), Thomas W. Hertel (Purdue University) and Elena Ianchovichina (World Bank)
(September 2001)

No. 154
(Also International Economics Working Paper No. 2001-13)
Assessing the Implications of Merchandise Trade Liberalization in China’s Accession to WTO
Elena Ianchovichina, Will Martin and Emiko Fukase (World Bank)
(September 2001)

No. 155
(Also International Economics Working Paper No. 2001-14)
Determinants of Export Performance: Evidence from Chinese Industries
Xiaohui Liu (University of Luton) and Chang Shu (Hong Kong Monetary Authority)
(September 2001)

No. 156
(Also International Economics Working Paper No. 2001-15)
Accession Negotiations in the WTO
Rick Bond (Pennsylvania State University), Stephen Tang-Foon Ching and Edwin Lun-cheung Lai (CityU)
(September 2001)

No. 157
(Also International Economics Working Paper No. 2001-16)
Protection Data for China
Nico van Leeuwen (CPB, Netherlands Bureau for Economic Policy Analysis)
(September 2001)

No. 158
(Also International Economics Working Paper No. 2001-17)
R&D in China and the Implications for Industrial Restructuring at the Dawn of China’s Accession to the WTO
Ping Lin (Lingnan University)
(September 2001)

No. 159
(Also International Economics Working Paper No. 2001-18)
Domestic Equity Control, Capital Accumulation, and Welfare: Theory and China’s Evidence
Chi-chur Chao, Win-lin Chou (Chinese University of Hong Kong) and Eden Siu-hung Yu (CityU)
(September 2001)

No. 160
(Also International Economics Working Paper No. 2001-19)
Southern Export of Dirty “Variety?and Optimality of Environmental Standards: Case of Consumption Pollution
Rajat Acharyya (Jadavpur University)
(September 2001)

No. 161
(Also International Economics Working Paper No. 2001-20)
Trade and the Language War: Chinese and English
Kwan Choi (Iowa State University)
(September 2001)

No. 162
(Also International Economics Working Paper No. 2001-21)
Trade Liberalization, WTO and China’s Food Economy in the 21st Century: Larger, Modest, or Little Impacts?
Jikun Huang (Chinese Academy of Sciences) and Scott Rozelle (University of California)
(September 2001)

No. 163
(Also International Economics Working Paper No. 2001-22)
Free Trade and Global Warming: A Trade Theory View of the Kyoto Protocol
Brian R. Copeland (University of British Columbia) and M. Scott Taylor (University of Wisconsin-Madison)
(September 2001)

No. 164
(Also International Economics Working Paper No. 2001-23)
Trade, Skill Acquisition and Distribution
Satya P. Das (Indian Statistical Institute)
(September 2001)

No. 165
(Also International Economics Working Paper No. 2001-24)
Implications of Many Industries on the Heckscher-Ohlin Model
Kwan Choi (Iowa State University)
(September 2001)

No. 166
(Also International Economics Working Paper No. 2001-25)
Unilateralism in a Multilateral World
Wilfred J. Ethier (University of Pennsylvania)
(September 2001)

No. 167
(Also International Economics Working Paper No. 2001-26)
Systematic Political Support for Tariffs
Wolfgang Mayer (University of Cincinnati)
(September 2001)

No. 168
(Also International Economics Working Paper No. 2001-27)
Trade and Institutional Efficiency
Kenneth S. Chan (McMaster University)
(September 2001)

No. 169
Profitability and Productivity of Chinese Industrial Firms: Measurement and Ownership Implications
Anming Zhang, Yimin Zhang and Ronald Zhao
(October 2001)

No. 170
(Also International Economics Working Paper No. 2001-28)
How Can South Asia and Sub-Saharan Africa Gain From the Next WTO Round?

Kym Anderson (University of Adelaide) and Shunli Yao (CityU)
(December 2001)

No. 171
(Also International Economics Working Paper No. 2001-29)
A Model of Air Cargo Liberalization: Passenger vs. All-Cargo Carriers

Anming Zhang and Yimin Zhang
(December 2001)

No. 172
(Also International Economics Working Paper No. 2002-1)
Economic Development, Trade and Wages
Ronald W. Jones (University of Rochester) and Sugata Marjit (Centre for Studies in Social Sciences, Calcutta)
(April 2002)

No. 173
(Also International Economics Working Paper No. 2002-2)
Plants and Productivity in International Trade
Andrew B. Bernard (Tuck School of Business, Dartmouth College, and NBER),
Jonathan Eaton (Boston University and NBER), J. Bradford Jensen (Center for Economic Studies, Bureau of the Census, and University of Maryland) and Samuel Kortum (Boston University and NBER)
(April 2002)

No. 174
(Also International Economics Working Paper No. 2002-3)
Commercial Culture, Political Culture and the Political Economy of Trade Policy:The case of Japan
Seiichi Katayama (Kobe University) and Heinrich W. Ursprung (University of Konstanz)

(April 2002)

No. 175
(Also International Economics Working Paper No. 2002-4)
The Simple Analytics of Optimal Growth with Illegal Migrants
Bharat R. Hazari and Pasquale M. Sgro (Deakin University)
(April 2002)

No. 176
(Also International Economics Working Paper No. 2002-5)
Lexicographic Demand Shift and Marginal Cost Dumping
Makoto Yano (Keio University) and Fumio Dei (Kobe University)
(April 2002)

No. 177
(Also International Economics Working Paper No. 2002-6)
On the Evolution of Comparative Advantage in Matching Models
Eric O¡¦N. Fisher (The Ohio State University) and Vikas Kakkar (CityU)
(April 2002)

No. 178
(Also International Economics Working Paper No. 2002-7)
International Protection of Intellectual Property
Gene M. Grossman (Princeton University) and Edwin Lun-cheung Lai (CityU)
(April 2002)

No. 179
Central Bank Intervention and Properties of the 1920s Currency Markets
Richard T. Baillie (Michigan State University) and Young-Wook Han (CityU)
(May 2002)

No. 180
The Effects of a Credit Constrained Sector on Asset Pricing
Claudian Siu-kit Kwok
(July 2002)

Keynote Lecture of The Second International Conference on Asian-Pacific Financial Markets


No. 33
Arbitrage Pricing Theory and Portfolio Management
Professor Martin J. Gruber
Nomura Professor of Finance
Stern School of Business
New York University

No. 34
Share Market Microstructure and the Design of Event Studies
Professor Philip R. Brown
KPMG Peat Marwick Professor of Accounting
Department of Accounting and Finance
The University of Western Australia

No. 35
The Predictability of International Asset Returns
Professor Bruno H. Solnik
Professor of Finance
HEC School of Management

 

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