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Does Spatial Misallocation in China’s Housing and Land Markets Drive Up Housing Prices?
Yongheng Deng, Yang Tang, Ping Wang, Jing Wu, Mar 23, 2022We documented pervasive spatial misallocations in the housing and land markets in China. We find larger cities with more competitive land markets and strict land supply restrictions have fewer subsidies in housing sales, and consequently a higher housing price compared to its frictionless benchmark. Removing frictions brings welfare gain because more individuals live in larger cities.
Improving State Effectiveness by Discouraging Civil Servants from Flattering Their Leaders
Alain de Janvry, Guojun He, Elisabeth Sadoulet, Shaoda Wang, Qiong Zhang, Mar 11, 2020Evaluation of public employees performance is essential to induce higher work efforts. We use an experiment in two provinces of china to explore how to design such evaluation. Results show that the incentive effect of evaluation can be larger if the employee does not know ex-ante who the evaluator will be, thus reducing attempts at personally influencing the evaluator and enhancing instead job achievements.
The Productivity Consequences of Pollution-Induced Migration in China
Gaurav Khanna, Wenquan Liang, Ahmed Mushfiq Mobarak, Ran Song, Apr 07, 2021Severe air pollution induces workers to move from productive to unproductive regions, reducing their contribution to the aggregate productivity in China. In this paper, we quantify the productivity and welfare consequences of this important new pattern of migration. We find that the productivity losses from pollution through the indirect migration channel are approximately as much as the direct health costs of pollution.
Estimating China’s Growth Potential from Its Global Value Chain Position
Dazhong Cheng, Jian Wang, Zhiguo Xiao, Mar 04, 2020We find that China’s potential growth in GDP per capita is substantially underestimated if the level of GDP per capita is employed as the convergence indicator as done in previous studies (e.g., Barro, 2015 and 2016). Using data on China’s position in the global value chain (GVC) prior to 2010, we predict that the country’s GDP per capita could have grown at 7%–8% annually between 2010 and 2015, which is closer...
Going Bankrupt in China
Bo Li, Jacopo Ponticelli, Aug 26, 2020We use a new case-level dataset to document a set of stylized facts on bankruptcy in China and study how the introduction of specialized courts across Chinese cities affected insolvency resolution and the local economy. We find that specialized courts hire better-trained judges and are 35% faster at dealing with bankruptcy cases than civil courts within the same city. We also find evidence that their introduction benefited the local economy by fostering firm entry, increasing average capital productivity, and favoring the reallocation of employment out of "zombie" firm–intensive sectors.
