Most Popular

The Impact of Rapid Aging and Pension Reform on Savings and the Labor Supply: the Case of China

Hui He, Lei Ning, Dongming Zhu, Jun 26, 2019

Individuals can use savings and labor supply to self-insure against uncertainties over their life cycle, such as idiosyncratic income shocks and changes in longevity and pension benefits. Using China as a case study, we investigate, both empirically and quantitatively, the impact of rapid aging and pension reform on savings and the labor supply, and the roles that savings and the labor supply play as self-insurance channels over the life cycle...

Rise of Bank Competition: Evidence from Banking Deregulation in China

Haoyu Gao, Hong Ru, Robert Townsend, Xiaoguang Yang, Aug 17, 2019

This paper documents a novel trade-off of banking deregulation in the context of China by using loan-level big data. We find that following a deregulation in the form of geographically lowered bank entry barriers, the potential benefits such as the lower interest rates for borrowers were mitigated adversely by the worsening credit allocation. The soft budget constraint of SOEs, with implicit government guarantees, makes new entrant banks prefer inefficient SOEs to contemporaneously-opaque local private firms.