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The Impact of Intranational Trade Barriers on Exports: Evidence from a Nationwide VAT Rebate Reform in China

Jie Bai, Jiahua Liu, Feb 19, 2020

It is well known that various forms of non-tariff trade barriers exist within a country. Empirically, it is difficult to measure these barriers as they can take many forms. We take advantage of a nationwide VAT rebate policy reform in China as a natural experiment to identify the existence of these intranational barriers due to local protectionism and study the impact...

Subways and Road Congestion

Yizhen Gu, Chang Jiang, Junfu Zhang, Ben Zou, May 06, 2020

In 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.

How Did the US-China Trade War Affect American Communities?

Michael E. Waugh, Apr 22, 2020

The US-China trade war—the unprecedented tit-for-tat increase in tariffs by the US and China—provided a unique laboratory to study and understand how changes in trade policy can redistribute the gains from trade. I argue that the trade war induced concentrated losses in consumption and employment for American communities most exposed to Chinese retaliatory tariffs.

Human Mobility Restrictions and the Spread of the Novel Coronavirus (2019-nCoV) in China

Hanming Fang, Long Wang, Yang Yang, Jun 03, 2020

We provide a rigorous examination of the causal impact of human mobility restrictions, particularly the lockdown of the city of Wuhan on January 23, 2020, on the containment and delay of the spread of the Novel Coronavirus (2019-nCoV) in China. We employ various difference-in-differences strategies to disentangle the lockdown effect on human mobility reductions from other confounding effects, including a panic effect, a virus deterrence effect, and a Spring Festival effect...

Price Discovery and Market Segmentation in China’s Credit Market

Zhe Geng, Jun Pan, Apr 08, 2020

The recent unprecedented wave of bond defaults in China has captured the attention of investors worldwide. We document a severe segmentation between the pricing of state-owned enterprise (SOE) and non-SOE bonds that arises sharply post 2018. Using our default measure, we find that this market segmentation is not driven by the fundamentals of the firms. We also show that this market segmentation has also caused...