Structural Reform in Germany

Krebs, Tom; Scheffel, Martin

doi:10.2139/ssrn.2750270

Cited by 1 publication

(2 citation statements)

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“…With Equation (8), Equation (14) and Equation ( 15) can be substituted into Equation (10), and using E t ðdz X Þ = ðdtÞ 2 = ðdtÞðdz X Þ = 0, we obtain: 16) is substituted into Equation ( 9), eliminating dt, we get…”

Section: The Stochastic Process Settingmentioning

confidence: 99%

“…Other studies have shown that the financing reform was valuable in promoting efficient enterprises' investment during the financial crisis [8][9][10][11], which can better remedy market failures and compensate for inefficient market allocation [12,13]. Financing reform can better ensure reform in enterprises' investment and economic growth faced with economic recession and external shocks, which may result in a national fiscal deficit in the short term, but improve the output of enterprises and employment in the medium term and generate a huge fiscal surplus in the long run [14]. With the development of a market-oriented system, the rewarding priority of reform would bring the knowledge transfer spillovers [15].…”

Section: Introductionmentioning

confidence: 99%

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A Stochastic Approach Analysing Enterprises’ Investment following Financing Reform in China

Xiao

Zhang

et al. 2022

Advances in Mathematical Physics

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This paper explores the change of enterprises’ investment following the financing system reform through the established stochastic investment model. In this constructed model, financing property, market-oriented reform, and government intervention are regarded as a stochastic process. Furthermore, the modern China’s economic situation is interpreted to analyze the enterprises’ investment by government intervention plan combined with he deduced proposition from the stochastic investment model. The results provide a depth understanding for characteristics of the enterprise in China that the steady capital of state-owned enterprises’ investment is higher than that of non-state-owned enterprises without government intervention before completing financing reform. Although government intervention can increase the investment level of state-owned enterprises, doing so increases the turbulence of the market economy. Additionally, the impact of government-led financing reform on enterprises’ investment is asymmetrical. Promoting market-oriented, clear-cut financing reform, and reducing government-led investment plans will improve enterprises’ investment efficiency and stabilize China’s economic development. The present paper provides a specific future orientation of China’s financing reform determining the level of enterprises’ investment.

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Section: The Stochastic Process Settingmentioning

confidence: 99%