Fiscal Stimulus, Deposit Competition, and the Rise of Shadow Banking: Evidence from China
Viral V. Acharya, Jun Qian, Yang Su, Zhishu Yang, Apr 24,
2024
The article reveals that the rise of shadow banking in China stems from the intensification of deposit competition after the global financial crisis, and analyzes the threat of small and medium-sized banks' disadvantage in this competition to the overall financial system.
China’s New Nationwide CO2 Emissions Trading System: General Equilibrium Impacts
Lawrence H. Goulder, Xianling Long, Chenfei Qu, Da Zhang, Apr 17,
2024
This article discussing the comprehensive impacts of China's newly introduced nationwide CO2 emissions trading system, with a focus on its interactions with environmental costs, the fiscal system, and the challenges faced in policy cost distribution.
Has COVID-19 permanently changed the nature of economic shocks on the Chinese economy?
Kaiji Chen, Patrick Higgins, Tao Zha, Apr 10,
2024
In latest study, Kaiji Chen and his colleagues at Emory University investigated the impact of COVID-19 on the Chinese economy. Through the construction of a GDP expenditure dataset and the application of SVAR modeling, they found that the constrained consumption shock during the pandemic significantly affected China's economy and may potentially alter its economic shock nature permanently.
Good Finance, Bad Finance, and Resource Misallocation: Evidence from China
Jiapin Deng, Qiao Liu, Apr 03,
2024
The development of finance driven by Chinese local governments exacerbates the problem of resource misallocation, whereas market-driven finance significantly improves allocative efficiency. This highlights the policy implication that modern finance in China should prioritize the efficient utilization of resources rather than mere expansion in scale.
The Burden of Education Costs in China: A Struggle for All, but Heavier for Lower-Income Families
Dezhuang Hu, Hongbin Li, Tang Li, Lingsheng Meng, Binh Thai Nguyen, Mar 27,
2024
Household education expenditure in China accounts for a substantial portion of household income, averaging around 17.1%, and it is inversely related to household income. As a necessity, education expenditure imposes excessively high costs on lower-income families. China needs to formulate policies to alleviate the financial burden on families, reform the school system, and enhance educational equity.
The Pre-Announcement Drift in China: Government Meetings and Macro Announcements
Jun Pan, Qing Peng, Mar 20,
2024
Confirming Chinese equity market is policy-driven, this study reveals a significant pre-Govt return before top government meetings, akin to the US pre-FOMC drift. It highlights the market's anticipation of these events and their impact on asset pricing, underscoring the centralized financial system in China.
State Versus Market: China’s Infrastructure Investment
Shuoge Qian, Hong Ru, Wei Xiong, Mar 13,
2024
In 2005, the Chinese government launched the landmark “36 Clauses” reform, marking a critical step toward forging a more favorable market environment.
Improving Regulation for Innovation: Evidence from China’s Pharmaceutical Industry
Ruixue Jia, Xiao Ma, Jianan Yang, Yiran Zhang, Mar 06,
2024
In 2015, China revamped its pharmaceutical regulations, drawing inspiration from the US, to accelerate drug approvals. Using data at the drug and firm levels during 2011–2021, this study reveals three key outcomes.
Brain Drain to the State Sector: Job Preferences and Outcomes for China’s College Graduates
Hongbin Li, Lingsheng Meng, Yanyan Xiong, Sinclair Cook, Feb 28,
2024
Despite private enterprises dominating China’s labor market, college-educated workers are still highly concentrated in the state sector. Using data from the Chinese College Student Survey, we find that 64% of students in the sample expressed a strong preference for state-sector employment.
Lucky Dragons
Chih Ming Tan, Xiao Wang, Xiaobo Zhang, Feb 21,
2024
This article explores the intriguing connection between Chinese zodiac signs and parental investment in children’s development. Particularly, parents invest more in children born under the “lucky” sign of the dragon, potentially impacting their cognitive and noncognitive skills alike.