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Does the rate of return from the Chinese real estate industry correlate with the intensity of competition among real estate firms? If China’s equity market performs efficiently, the rates of return of real estate firms should vary indirectly with their level of monopoly power. Greater monopoly power reduces earnings risk and leads to lower costs of capital. The authors analyze empirical evidence and indicate no relationship exists between returns and competition. Speculation may induce stock prices to deviate from normal values. Because normal values assume no speculation, Chinese markets are not likely to be economically efficient. [ABSTRACT FROM PUBLISHER]

Transportation investment has served as one of the most promising economic instruments to lower transportation costs and promote economic growth. To enhance the effectiveness and efficiency of such kind of capital investments, one critical issue is to gain a better understanding of the pathways that transportation investment would have to influence economic growth. By using a provincial panel data in China, this study attempts to investigate how transportation investments impact economic growth through a variety of pathways. Structural equation modeling (SEM) is applied to understand the relationship between transportation investment, investment in relevant sectors, industrial structure, employment growth, and economic development. It finds that investment in transportation sectors can promote economic growth through direct and multiple indirect pathways. The indirect pathways can improve economic performance through the investments in relevant sectors, growth of industry and employment growth. These impacts would be significantly changed under diverse spatial and temporal conditions. [ABSTRACT FROM AUTHOR]

The equity premium is a key indicator in capital investment decisions. However, few studies estimate the equity premium for the Chinese stock market. To shed more light on the subject, we use dividend and consumption growth models to estimate the expected equity premium in China from 2005 to 2017. Our evidence shows that the geometric mean of the expected yearly equity premium from the consumption growth model, 9.69 percent, is similar to that of the realized yearly equity premium from stock returns, 8.11 percent. The corresponding values are 0.74–0.68 percent for monthly data, and 2.49–2.28 percent for quarterly data. In contrast, the estimate of the expected equity premium from the dividend growth model is far higher than the realized equity premium. However, both the dividend and consumption growth models fail to explain the high fluctuations of the realized equity premium. [ABSTRACT FROM AUTHOR]