A Bridge on Economic Issues between China and the World
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Spillovers in Childbearing Decisions and Fertility Transitions: Evidence from China
Pauline Rossi, Yun Xiao, Mar 24, 2021To what extent and through which mechanisms are couples influenced by others when choosing their own family size? Recent research exploits exemptions in China’s family planning policies to show that conformism and competition drove the diffusion of small families, and hence accelerated the fertility transition in China.
Can Investment Incentives Crowd Out Innovation? Evidence from China
Shaowei Ke, Yao Lu, Xinzheng Shi, Yeqing Zhang, Nov 06, 2019The Chinese government has been using strong fiscal stimuli to encourage investment. While these fiscal policies, such as investment tax credits, often encourage firm investment, we find that investment tax incentives may generate an unintended reduction of firms’ innovation. Moreover, the crowding-out effect is non-monotonic in the level of financial constraints.
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...
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...
In the Shadows of the Government: Relationship-building during Political Turnovers
Hanming Fang, Zhe Li, Nianhang Xu, Hongjun Yan, Mar 06, 2019We document that firms use two instruments to build relationships with local government officials in China: “perk spending” and personnel changes. Following a turnover in the positions of Party Secretary or Mayor of a city in China, firms (especially private firms) headquartered in that city significantly increase their perk spending...
