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Going Green in China: Firms’ Responses to Stricter Environmental Regulations
Haichao Fan, Joshua Graff Zivin, Zonglai Kou, Xueyue Liu, Huanhuan Wang, Apr 29, 2020Evidence from China shows that firms respond to stricter enforcement of the emission reduction target by reducing their pollution. This effect is stronger for firms in industries with higher pollution intensity. Stricter environmental regulations also lead to sharp declines in firms’ profits, capital, and labor. A sequence of tests of the underlying mechanisms reveals...
The Unintended Impacts of Agricultural Fires: Human Capital in China
Joshua Graff Zivin, Tong Liu, Yingquan Song, Qu Tang, Peng Zhang, Dec 25, 2019The practice of burning agricultural waste is ubiquitous around the world, yet the external human capital costs from those fires have been underexplored. Using data from the National College Entrance Examination (NCEE) and agricultural fires detected by high-resolution satellites in China from 2005 to 2011, this paper investigates the impacts of fires on cognitive performance...
Income Inequality among Old Chinese
Katja Hanewald, Ruo Jia, Zining Liu, Oct 16, 2019Using data from the China Health and Nutrition Survey (CHNS) from 1991–2015, we decompose the income inequality among old Chinese and compare the income inequality between old households and young households. We develop an OLG model and a new empirical method to test how initial socioeconomic differences transmit to income inequality in the working years and then in old age. We find that the urban-rural gap and educational differences...
Does Good Luck Make People Overconfident? Evidence from a Natural Experiment in China
Huasheng Gao, Donghui Shi, Bin Zhao, Aug 01, 2018We find that retail investors who win an allotment for an IPO subscription subsequently become more overconfident relative to retail investors who do not have an allotment. The former group subsequently trades more frequently and loses more money. Overall, our evidence indicates that the experience of good luck makes people more overconfident about their prospects.
Higher Education and Corporate Innovation
Dongmin Kong, Bohui Zhang, Jian Zhang, Jul 22, 2020This paper investigates the impact of higher education on corporate innovation using a difference-in-differences approach. We find that Chinese firms in skilled industries generate better innovation outcomes, especially firms headquartered in provinces with more science and engineering college graduates, young firms that are more likely to hire young graduates, and firms located near universities. Also, we show that technological innovation is a mechanism...
