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The Effect of Pollution and Heat on the Productivity of High-Skill Public Sector Workers in China

Matthew E. Kahn, Pei Li, May 22, 2019

The quality of governance depends on public sector worker productivity. We use micro data from China to document that judges are less productive on polluted days. We find that public sector productivity elasticities are larger than the published estimates of private sector productivity elasticities with respect to pollution.

Judicial Independence, Local Protectionism, and Economic Integration in China

Ernest Liu, Yi Lu, Wenwei Peng, Shaoda Wang, Nov 23, 2022

Exploiting the staggered rollout, since 2014, of judicial independence reform that removed local governments’ control over local courts’ financial and personnel decisions in China, we show that judicial independence can reduce local protectionism and foster cross-regional economic integration.

Data, Collateral, and Implications for the Credit Cycle

Leonardo Gambacorta, Yiping Huang, Zhenhua Li, Han Qiu, Dec 09, 2020

The use of massive amounts of data by large technology firms (big techs) to assess firms’ creditworthiness could reduce the need for collateral in credit markets. Using a unique dataset of more than 2 million Chinese firms that received credit from both an important big tech firm (Ant Group) and traditional commercial banks, we find that a greater use of big tech...

Improving State Effectiveness by Discouraging Civil Servants from Flattering Their Leaders

Alain de Janvry, Guojun He, Elisabeth Sadoulet, Shaoda Wang, Qiong Zhang, Mar 11, 2020

Evaluation 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.

Who Captures the Power of Pen?

Jiaxing You, Bohui Zhang, Le Zhang, Oct 17, 2018

We study how government control affects the roles of the media as an information intermediary and a corporate monitor. Comparing a large sample of news articles written by state-controlled and market-oriented Chinese media, we find that articles by the market-oriented media are more critical, more accurate, more comprehensive, and timelier than those by the state-controlled media. Moreover, only articles by the market-oriented media have a significant corporate governance impact. Subsample analyses, interviews with journalists, and a survey of university students suggest that the market-oriented media’s superior effects are explained by their operating efficiency and independence.