Research


Publications

  1. Bangxi Li, Chong Liu and Liang Chen.

    “The ‘Real-Fictitious’ Relationship in China’s Economic Development: An Extension of Marx’s Theory on the Reproduction of Aggregate Social Capital” (in Chinese)

    Social Sciences in China [TOP Chinese Journal in Social Sciences], 2024, (12): 23-43. [SSC2024]

    Abstract: The boundaries between the real economy and the fictitious economy have become increasingly blurred amid the ongoing technological revolution, particularly driven by digital innovations. While sector classifications continually evolve to adapt to practical realities, the division into major departments provides a relatively stable foundation for observing long-term economic development patterns. To understand the operational dynamics of the fictitious economy relative to the real economy, this paper positions fictitious capital as a major department parallel to the means of production and means of consumption, which extends Marx’s theory of the reproduction of the aggregate social capital and interprets stock changes through the flow dynamics of capital movement, thereby constructing an analytical framework for the circuit of capital within the “real-fictitious” three-major-department system. Using input-output data, this paper establishes a three-major-department table and develops a series of indicators that capture both structural and relational information, enabling an empirical analysis of the “real-fictitious” relationship in China’s economic development. The results show that China’s real and fictitious economies are deeply intertwined, jointly shaping the current economic structure. However, the fictitious economy remains in a stage of expansion but has yet to achieve substantial depth, with the real economy continuing to serve as the foundation. The “transforming from real” phenomenon does not necessarily imply a complete “shift to fictitious.” Instead, while the scale of fictitious capital returning to the real economy is relatively sound, significant structural imbalances and associated risks persist. Optimizing the structural reintegration of fictitious capital into the two major departments of the real economy and formulating systematic governance strategies to ensure that fictitious capital effectively serves the real economy are critical for achieving high-quality economic development.

    • The 8th WEI Xinghua Best Paper Award

    • Core contents of the doctoral dissertation awarded by Contemporary Economics Doctoral Innovation Project ( National Award for Outstanding Doctoral Dissertation, ONLY 10 )

  2. Bangxi Li, Chong Liu, Feng Zhao and Yanghua Huang.

    “Production Structure, Income Distribution and Macroeconomic Efficiency: An Analytical Framework and Empirical Study of Marxist Political Economy” (in Chinese)

    Economic Research Journal [TOP Chinese Journal in Economics], 2019, 54 (3): 181-193. [ERJ2019]

    Abstract: In the current literature, there is little systematic research on the relationship among adjustment of the income distribution, change in economic structure and improvement of macroeconomic efficiency. This paper expands Marx’s reproduction schema into the “Marx–Sraffa” three-department structure table comprising fixed capital, general means of production and means of consumption and employs China’s input–output table from 1987 to 2015 to portray the relationship between income distribution and macroeconomic efficiency under investment-driven growth. This paper calculates the wage–profit curve of China’s economy and evaluates the space of macroeconomic efficiency improvement in China based on the deviation between actual and potential income distribution structure. The results show that there is a downward trend of the profit rate, which meets Marx’s theoretical prediction, and the decline in the profit rate is mainly attributed to an increase in the organic composition of capital arising from the rapid growth of fixed capital investment under extended growth. The analysis of macroeconomic efficiency shows that the space for improving macroeconomic efficiency is extremely limited under traditional growth pattern and that China must transform its economic development pattern and foster new economic growth drivers.

    • The 5th LIU Shibai Award in Economics

    • TOP 0.5% on Academic Influence among 2,952 Papers in Political Economy (2012 - 2019)

    • Translated into English and Reprinted by China Political Economy, 2021, 4 (1): 110-127 [CPE2021]

  3. Bangxi Li and Chong Liu.

    “Mathematical Political Economy: Motivations and Methods” (in Chinese)

    Chinese Social Sciences Today, 2025, Feburary 27: A05. [CSST2025]

    Abstract: The application of mathematical analysis to Marxist political economy has deep historical roots. This paper reasserts the importance of mathematical political economy within the Marxian tradition, challenging the notion that Marxism rejects formal methods. Drawing on Marx’s own quantitative practices alongside modern debates, this paper argues that formalizing Marxian theory is both necessary and feasible. Beyond resolving the inherent ambiguities of natural language (e.g., disputes over measures of exploitation), mathematical modeling facilitates three key advances: (1) a precise articulation of class-structured agency, where capital and labor interact not as isolated optimizers but as embodiments of antagonistic production relations; (2) a rigorous reconstruction of reproduction circuits, contrasting linear neoclassical production functions with Marx’s circular flows of value and use-value; and (3) a dynamic modeling of endogenous structural contradictions that eschews equilibrium fetishism in favor of prioritizing the disequilibrating forces central to historical materialism. Ultimately, this paper categorizes recent advances in the field into two strands: “For Marx,” which focuses on refining and advancing the foundational theories of Marxian political economy through innovative mathematical methods, and “By Marx,” which emphasizes problem-driven empirical research that uses these foundational theories to quantitatively analyze contemporary economic development.

  4. Chong Liu and Lirong Jiang.

    “The French Regulation School: Core Concepts, Theoretical Evolution and Enlightenment” (in Chinese)

    China Review of Political Economy, 2022, 13 (6): 146-174. [CRPE2022]

    Abstract: Born in the economic crisis and crisis in economics in the 1970s, the French Regulation School (FRS), theoretically inspired by Marx and other radical economists, advocates studying the capitalist mode of production (CMP) as a historical process with the “Regulation Approach” as a leading paradigm. It is of great significance to examine the achievements and new progress of the FRS. This paper reviews the core concepts and theoretical evolution of the FRS from the perspective of Marx’s economics. We find that the institutional forms, mode of regulation, and accumulation regime jointly determine the capitalist economy’s self-regulation, self-renewal, and self-development, where five types of crises are also involved. There is a strong continuity of studies among scholars of different generations. The transformation from Fordism to Post-Fordism and exportism as a dominant mode of growth in the East Asian newly industrializing economies (EANICs) has attracted the attention of scholars in the 20th century while emphasizing the central role of the state in regulation is an essential theoretical turn in the 21st century. Regarding methodology, the FRS pays attention to complementary economic and extra-economic mechanisms, integrated micro and macro perspectives, historical induction, and contradiction analysis, all of which have rich reference significance for the innovation of Marxist economics.

  5. Chong Liu, Bangxi Li and Jim Huangnan Shen.

    “Accelerated Depreciation and Investment-driven Growth: A Marx-Okishio Approach”

    Evolutionary and Institutional Economics Review [ESCI], 2025, https://doi.org/10.1007/s40844-025-00301-w. [EIER2025]

    Abstract: Accelerated depreciation of fixed assets is a prominent tax reduction policy. While existing empirical studies have primarily focused on the micro perspective, there is a lack of literature systematically quantifying its macro-level economic impact. Based on Marxist political economy and drawing on Okishio’s theory of accumulation, we propose an analysis framework integrating the reproduction of fixed capital into the overall reproduction of aggregate social capital. This study aims to examine whether, and to what extent, accelerated depreciation can promote economic growth, using China’s input-output data from 1981 to 2020. The findings reveal that accelerated depreciation positively impacts economic growth, primarily driven by new investments. This impact becomes more significant as the depreciation period shortens. However, it is essential to note that shortening the depreciation period also leads to a negative adjustment effect due to increased costs. Theoretical implications for policymaking need a systematic perspective on the role of accelerated depreciation and investment-driven growth.



Working Papers

  1. Bangxi Li, Chong Liu and Feng Zhao.

    “Fixed Asset Investment, Accelerated Depreciation and Economic Growth: Theoretical Framework and Empirical Evidence” (in Chinese)

    Finance and Trade Economics, R&R.

  2. Chong Liu and Bangxi Li.

    “The Study of Economic Growth from the Perspective of Production Theory: Marx, Neoclassical and Post-Keynesian” (in Chinese)

    China Social Science Review, R&R.

  3. Chong Liu.

    “Marx vs Hayek: Fictitious Capital and the Crisis of Capitalism”

    Cambridge Journal of Economics.



Work in Progress

  1. Recent Development in Research on Fictitious Capital and Financial Capital (in Chinese)

  2. Is There Fictionalization in China’s Economy? A Comparative Analysis of Marxist Political Economy (in Chinese)

  3. The Efficiency of Finance in Serving the Real Economy: An Empirical Study from the Perspective of Fictitious Capital Theory (in Chinese)

  4. Coordinated Development and Spatial Spillover Effect of Macroeconomic Efficiency: An Empirical Study Based on the Provincial Input-Output Tables (in Chinese)

  5. Marx or Keynes? Revision of the Mathematical Model of Endogenous Public Expenditure (in Chinese)

  6. From Marx’s Transformation Problem to Sraffa’s Standard Commodity (in Chinese)

  7. Spatial Unbalance of Real-Fictitious EconoNexus in the AI Era