Pushing on a String: State-Owned Enterprises and Monetary Policy Transmission in China

Peter Tillmann, Hongyi Chen, Apr 18, 2018

In China, a large share of enterprises is state-owned and has preferential access to finances. This should affect the way the economy responds to changes in monetary policy. We find that a policy easing is more effective than a policy tightening – which is consistent with the PBC being able to “push on a string”.

E-Commerce Integration and Economic Development: Evidence from China

Victor Couture, Benjamin Faber, Yizhen Gu, Lizhi Liu, Apr 11, 2018

In our recent work (Couture et al., 2018), we combine an experiment that we implement across Chinese villages with a new collection of survey and administrative microdata to provide evidence on the potential of e-commerce integration to foster economic development in the countryside. We also explore the underlying channels and the distribution of the gains from e-commerce across households and villages.

The Role of Punctuation in the P2P Lending Market

Xiao Chen, Bihong Huang, Dezhu Ye, Apr 04, 2018

Using data from Renrendai, one of the largest P2P lending platforms in China, we investigate how the amount of punctuation used in loan descriptions influences the funding probability, borrowing rate, and default. The empirical evidence shows that the amount of punctuation is negatively associated with the funding probability and borrowing rate. We propose that the usage of punctuation affects the readability of a loan description and reflects borrowers’ self-control and cognitive ability.

Developing Credit Markets in Provinces Improves Innovation among Firms in the People’s Republic of China

Hua Shang, Quanyun Song, Yu Wu, Mar 28, 2018

Our recent research finds that provincial credit market development, through improving credit allocation, enhances firms’ product innovation incentives and outcomes in the People’s Republic of China. We further show that firms’ credit constraints and performance are two channels through which credit market development affects the innovative capacities of firms. We suggest that in order to further promote firms’ innovations, China should encourage financial institutions to actively screen those firms who have good performance but face credit constraints.


The 2009 Monetary Stimulus in China

Kaiji Chen, Patrick Higgins, Daniel F. Waggoner, Tao Zha, Mar 21, 2018 

Bilateral Trade and Shocks in Political Relations: Evidence from China

Yingxin Du, Jiandong Ju, Carlos D. Ramirez, Xi Yao, Mar 14, 2018 

China’s Mobility Barriers and Employment Allocations

Liwa Rachel Ngai, Christopher Pissarides, Jin Wang, Mar 07, 2018 

Can Credit Still Prop Up the Chinese Economy?

Sophia Chen, Lev Ratnovski, Feb 28, 2018 

Connect to Trade

Haoyuan Ding, Haichao Fan, Shu Lin, Feb 21, 2018 

Privatization and Productivity in China

Yuyu Chen, Mitsuru Igami, Masayuki Sawada, Mo Xiao, Jan 31, 2018 

The Long-term Persistence of Informal Finance in China

Jinyan Hu, Chicheng Ma, Bo Zhang, Jan 24, 2018 

Rural Property Rights and Agricultural Productivity

A. V. Chari, Elaine M. Liu, Shing-Yi Wang, Yongxiang Wang, Jan 17, 2018