Institutional inertia, local leadership turnover, and changes in the structure of fiscal expenditure

Taking the perspective of local party and government leadership change and using L-kurtosis to analyze provincial panel data in China from 1996 to 2018, this article identifies the structural change pattern of fiscal expenditures. We find that economic construction, science, education, culture, and health expenditures conform to the punctuated equilibrium pattern, while public security expenditures conform to the gradualism pattern. For expenditures under the punctuated equilibrium pattern, the longer the current local leader’s tenure is, the greater the friction with institutional inertia, and the larger the deviation from the average expenditure structure during the previous local leader’s tenure; however, for expenditures under the gradualism pattern, the local leader factor does not have a significant effect. This article also discusses the motivations of new local leaders for adjusting their expenditure structure. In terms of the proportion of economic development expenditures, in targeting expenditures, new leaders are more likely to “strive for the upper ends of the country,” while the expenditures for science, education, culture, and health are targeted to “converge to the national average.”

Stabilizing hidden room-temperature ferroelectricity via a metastable atomic distortion pattern

Nonequilibrium atomic structures can host exotic and technologically relevant properties in otherwise conventional materials. Oxygen octahedral rotation forms a fundamental atomic distortion in perovskite oxides, but only a few patterns are predominantly present at equilibrium. This has restricted the range of possible properties and functions of perovskite oxides, necessitating the utilization of nonequilibrium patterns of octahedral rotation. Here, we report that a designed metastable pattern of octahedral rotation leads to robust room-temperature ferroelectricity in CaTiO3, which is otherwise nonpolar down to 0 K. Guided by density-functional theory, we selectively stabilize the metastable pattern, distinct from the equilibrium pattern and cooperative with ferroelectricity, in heteroepitaxial films of CaTiO3. Atomic-scale imaging combined with deep neural network analysis confirms a close correlation between the metastable pattern and ferroelectricity. This work reveals a hidden but functional pattern of oxygen octahedral rotation and opens avenues for designing multifunctional materials.

Who Acquires Information in Dealer Markets?

We study information acquisition in dealer markets. We first identify a one-sided strategic complementarity in information acquisition: the more informed traders are, the larger market makers’ gain from becoming informed. When quotes are observable, this effect in turn induces a strategic complementarity in information acquisition amongst market makers. We then derive the equilibrium pattern of information acquisition and examine the implications of our analysis for market liquidity and price discovery. We show that increasing the cost of information can decrease market liquidity and improve price discovery. (JEL O82, O83, G14)

A Traffic Flow Evolution Process toward Mixed Equilibrium with Multicriteria of Route Choice Behaviour

Based on the price-quantity adjustment behaviour principle of disequilibrium theory, the route choices of travellers are also affected by a quantity signal known as traffic flow, while the route cost is considered as a price signal in economics. Considering the quantity signal’s effect among travellers, a new route comfort choice behaviour criterion and its corresponding equilibrium condition are established. The network travellers are classified into three groups according to their route choice behaviour: travellers in the first group choose the shortest route following the route rapidity behaviour criterion with complete information forming the UE (user equilibrium) pattern, travellers in the second group choose the most comfortable route following the route comfort behaviour criterion with complete information forming the QUE (quantity adjustment user equilibrium) pattern, and travellers in the third group choose a route according to their perceived travel time with incomplete information forming the SUE (stochastic user equilibrium) pattern. The traffic flows of all three groups converge to a new UE-QUE-SUE mixed equilibrium flow pattern after interaction. To depict the traveller-diversified choice behaviour and the traffic flow interaction process, a mixed equilibrium traffic flow evolution model is formulated. After defining the route comfort indicator and the corresponding user equilibrium state, the equilibrium conditions of the three group flows are given under a mixed equilibrium pattern. In addition, an equivalent mathematical programming of the mixed equilibrium traffic flow evolution model is proposed to demonstrate that the developed model converges to the mixed equilibrium state. Finally, numerical examples are examined to evaluate the effect of route comfort proportions on the traffic network flow evolution and analyse the performance of the proposed model.

Well-Posedness of MultiCriteria Network Equilibrium Problem

New notions ofϵ-equilibrium flow andξk0-ϵ-equilibrium flow of multicriteria network equilibrium problem are introduced; an equivalent relation between vectorϵ-equilibrium pattern flow andξk0-ϵ-equilibrium flow is established. Then, the well-posedness of multicriteria network equilibrium problem is discussed.

An Equilibrium Model of Interbank Networks Based on Variational Inequalities

We develop an equilibrium model of credit network and trust network in the interbank market. We consider two kinds of decision makers including banks with liquidity surplus and banks with liquidity shortage. We model the behavior of the decision makers, derive the equilibrium conditions, and establish the variational inequality formulation for interbank credit network and trust network. We then utilize the variational inequality formulation to obtain qualitative properties of the equilibrium pattern in terms of existence and uniqueness.