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This paper aims to evaluate the performances of the wavelet, Hodrick–Prescott (HP), and Baxter–King (BK) filters in extracting cyclical information and to use an appropriate method to analyze China's business cycles. First, we use a second‐order autoregression (AR (2)) and random walk, based on Monte Carlo simulation experiments, to generate the data‐generating processes (DGPs) with different frequency characteristics. Second, the HP, BK, and wavelet filters are applied to extract the cyclical components of the respective DGPs. Third, the filtering abilities of the three methods are statistically compared. The results show the following: (1) Under the condition that the DGP is low frequency (long cycle) and trend dominated, the filtering performance of the three methods will remain unsatisfactory. (2) If the DGP is high frequency (short cycle), all three methods can serve as effective methods regardless of whether they are trend dominated or cycle dominated. However, it can be seen that the BK and wavelet filters present better performance than the HP filter. (3) In other cases, better filtering performances can be observed in the wavelet. Finally, the three methods are applied to estimate China's business cycles. In conclusion, this paper argues that the wavelet can effectively replace HP and BK filters to extract cyclical components. [ABSTRACT FROM AUTHOR]

This paper studies the transmission mechanisms that underlie China's house price fluctuations using a dynamic stochastic general equilibrium (DSGE) model. The model is estimated with Bayesian methods, which accounts well for business cycle properties of the housing market. Results show that shocks to housing productivity and the government land supply to housing developers are the primary contributors to house price volatility, accounting for 37% of house price volatility in the short run and 32% in the long run. The importance of housing valuation shocks and shocks to migration only increases in models without the supply side of the housing market. [ABSTRACT FROM AUTHOR]

This paper investigates whether the restriction on executive compensation in Chinese state‐owned enterprises (SOEs) imposed by the Government's say‐on‐pay schemes is conducive to corporate risk taking. Using a sample of listed SOEs over the period 2005–2018, we find that the restriction on executive compensation is negatively associated with corporate risk taking, suggesting that regulatory intervention in executive pay may produce unintended consequences. Our analyses also demonstrate that this negative regulatory effect on corporate risk taking is driven by listed SOEs in the growth stage of the business life cycle and by those in the provinces with a significant degree of government intervention. An additional test shows that the negative effect of the pay restriction on risk taking disappears in the SOEs in which managers hold shares, suggesting that an alignment of interests between managers and other shareholders mitigates the negative effect of the pay restriction. Our finding is robust to a batch of tests to alleviate the concerns about self‐selection and reverse causality. [ABSTRACT FROM AUTHOR]

Industry-wide information infrastructures (IIIS) have recently gained increased attention by policy makers, especially in the healthcare sector where it is believed that IIIS can substantially contribute to the taming of exploding healthcare costs and dramatically improve service quality, e.g., by avoiding widespread medication errors. However, the emergence and evolution of IIIS is as yet poorly understood, partly because the information systems (IS) literature traditionally uses much smaller units of analysis such as projects, organizations or small networks of organization. In this paper, we propose a combined company-level and industry-level framework to shed light on the process of IIIS emergence. We demonstrate, for the first time, that IIIS emergence is intricately linked to the industry life cycle for the case of fragmented industries. We also explore the relationship between the industry-level and company-level life cycles in the process of IIIS emergence, and develop a novel proposition regarding this relationship. Our findings suggest that current policy initiatives to promote the development of IIIS have not adequately taken industry-level conditions into consideration. [ABSTRACT FROM AUTHOR]