A Bridge on Economic Issues between China and the World
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The Great Chinese Inequality Turnaround
Ravi Kanbur, Yue Wang, Xiaobo Zhang, Jul 26, 2017This paper argues that after a quarter century of sharp and sustained increase, Chinese inequality is now plateauing and even turning using various data sources and inequality perspectives. The evolution of inequality is further examined through decomposition by income sources and subgroups. Some preliminary explanations are provided for these trends in terms of shifts in policy and the structural transformation of the Chinese economy.
Subways and Road Congestion
Yizhen Gu, Chang Jiang, Junfu Zhang, Ben Zou, May 06, 2020In our recent work (Gu et al., 2019), we combine a difference-in-differences approach with a novel road speed dataset from Baidu Maps to provide evidence on the effect of subways on road congestion. We explore heterogeneous effects with respect to road characteristics. Guided by a conceptual framework of transportation mode choices, we shed light on the welfare impact of subways, using Beijing as an example.
Leverage-Induced Fire Sales and Stock Market Crashes
Jiangze Bian, Zhiguo He, Kelly Shue, Hao Zhou, Dec 03, 2018The authors find that margin investors heavily sell their holdings when their account-level leverage edges toward the maximum leverage limits. Stocks that are disproportionately held by accounts close to leverage limits experience high selling pressure and abnormal price declines that subsequently reverse over the next 40 trading days. Unregulated shadow-financed margin accounts contributed more to the market crash even though these shadow accounts had higher leverage limits and held a smaller fraction of market assets.
State Versus Market: China’s Infrastructure Investment
Shuoge Qian, Hong Ru, Wei Xiong, Mar 13, 2024In 2005, the Chinese government launched the landmark “36 Clauses” reform, marking a critical step toward forging a more favorable market environment.
Faking Trade for Capital Control Evasion: Evidence from Dual Exchange Rate Arbitrage in China
Renliang Liu, Liugang Sheng, Jian Wang, Nov 25, 2020We examine whether firms over-report international trade to evade capital controls for foreign exchange arbitrage, by specifically testing whether the aggregate bilateral trade data gap between trading partners is positively (negatively) correlated with the exchange rate spread when the spread is positive (negative). At the disaggregated level, we also employ Benford’s law to detect trade data manipulations...
