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on China |
| By: | Carlos Garriga; Aaron Hedlund; Yang Tang; Ping Wang |
| Abstract: | This paper explores the contribution of the structural transformation and urbanization process to China's housing-market boom. Rural to urban migration together with regulated land supplies and developer entry restrictions can raise housing prices. This issue is examined using a multi-sector dynamic general-equilibrium model with migration and housing. Our quantitative findings suggest that this process accounts for about 80 percent of urban housing price changes. This mechanism remains valid in extensions calibrated to the two largest cities with most noticeable housing booms and to several alternative setups. Overall, supply factors and productivity account for most of the housing price growth. |
| JEL: | E20 O41 R21 R31 |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:23819&r=cna |
| By: | Boffy-Ramirez, Ernest (University of Colorado Denver); Moon, Soojae (University of Colorado Denver) |
| Abstract: | Together with the rapid growth of the Chinese economy, there has been a growing divide in the earnings of urban and rural residents. In this paper we focus on China's household registration system, or "hukou", as a potential source of the earnings gap. Using multiple waves of data from the Chinese Health and Nutrition Survey from 1993 through 2011, we take advantage of variation in hukou status generated by individual-level changes over time. Unlike previous studies, we are able to control for fixed individual-specific characteristics that determine earnings and focus specifically on estimating an urban hukou "premium". For estimates that do not account for time-invariant individual characteristics, urban hukou holders earn almost 30% more than rural hukou holders. After we account for individual-level fixed characteristics, the urban hukou premium drops to 6–8%. Our empirical evidence indicates that the hukou system is a notable component of the urban-rural earnings differential, but its importance should not be overstated. Given long-standing differences in access to government funding and social services between rural and urban populations, relaxing residency restrictions may not be a panacea for curbing rising income inequality. |
| Keywords: | hukou, migration, China, urban-rural income gap, inequality, labor market frictions |
| JEL: | J30 J80 O15 R23 |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11022&r=cna |
| By: | Qu FENG (Department of Economics, Nanyang Technological University, 14 Nanyang Drive, Singapore 637332.); Zhifeng WANG (Department of Economics, Nanyang Technological University, 14 Nanyang Drive, Singapore 637332.); Guiying Laura WU (Department of Economics, Nanyang Technological University, 14 Nanyang Drive, Singapore 637332.) |
| Abstract: | China has experienced high-speed catch-up growth with an average annual rate of over 8% in per capita GDP in the past four decades. Using growth accounting, Zhu (2012) nds that the growth of total factor productivity (TFP) accounts for 77% of Chinas per capita GDP growth during 1978-2007, and argues that Chinas TFP growth is mainly driven by resource reallocation due to market liberalization and institutional reforms. This paper aims to estimate Chinas aggregate productivity growth by applying three leading methods of estimating rm-level production function on Chinese manufacturing rms during 1998-2007, and quantify the contribution of resource reallocation to productivity growth. In addition, we also empirically compare the three estimation methods in this large data set. |
| Keywords: | Chinas economic growth, TFP growth, production function, resource reallocation |
| JEL: | D24 O14 |
| Date: | 2017–06 |
| URL: | http://d.repec.org/n?u=RePEc:nan:wpaper:1706&r=cna |
| By: | Teng Ma (Graduate School of Economics, Kobe University); Kenji Takeuchi (Graduate School of Economics, Kobe University) |
| Abstract: | This study examines the effects of air pollution control within the thermal power sector during the 2008 Beijing Olympic Games (BOG08). Using data on pollution control equipment and energy intensity, we investigate for significant differences in their levels between provinces under the regional control policy for BOG08 and other provinces. The results suggest that the energy intensity of thermal power plants improved in 2007 and 2008 in provinces designated as areas requiring coordinated air pollution control for the Olympic Games. On the other hand, we found weaker statistical evidence for treatment effects on pollution control equipment. |
| Keywords: | Air pollution; China; Beijing Olympic Games; Thermal power sector |
| JEL: | Q52 L51 L94 |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:koe:wpaper:1718&r=cna |
| By: | Xiao CHEN (Department of Finance, Jinan University, Guangzhou 510630, China.); Bihong HUANG (Asian Development Bank Institute, Kasumigaseki Building 8F, 3-2-5 Kasumigaseki, Chiyoda-ku, Tokyo 100-6008, Japan.); Dezhu YE (Department of Finance, Research Institute of Finance, Jinan University, Guangzhou 510630, China.) |
| Abstract: | This paper investigates the role of punctuation in the peer-to-peer (P2P) lending market. Using data from Renrendai, one of the largest P2P lending platforms in China, we investigate how the amount of punctuation used in loan descriptions influences the funding probability, borrowing rate, and default. The empirical evidence shows that the amount of punctuation is negatively associated with the funding probability and borrowing rate. We propose that the usage of punctuation affects the readability of a loan description and reflects borrowers’ self-control and cognitive ability. Within a given number of words, excessive usage of punctuation makes loan description informal and reduces the readability of the text, thereby impairing investors’ trust in borrowers. Moreover, borrowers that overuse punctuation may have lower ability of self-control, and tend to underestimate the risk of borrowing and offer lower borrowing rate due to overconfidence. |
| Keywords: | P2P lending; information asymmetry; word; punctuation |
| JEL: | G10 G11 G14 G20 G23 G29 |
| Date: | 2017–07 |
| URL: | http://d.repec.org/n?u=RePEc:nan:wpaper:1707&r=cna |
| By: | Yongyou Nie (School of Economics, Shanghai University, China); Enci Wang (School of Economics, Shanghai University, China); Qinxin Guo (Graduate School of Economics, Kobe University, Japan); Junyi Shen (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan, and School of Economics, Shanghai University, China) |
| Abstract: | In this study, we conducted a stated choice survey in Shanghai to examine the attitudes of Shanghai residents towards electric vehicles and their attributes. Multinomial Logit and Random Parameter Logit models were used to analyze the response data for three samples—the full sample, a subsample of potential electric vehicle purchasers, and a subsample of unlikely electric vehicle purchasers. We found that the respondents in each of the three groups preferred electric vehicles with a longer driving range, a shorter charging time, a faster maximum speed, lower pollution emissions, lower fuel cost, and a lower price. However, a comparison of the two subsamples showed that potential electric vehicle purchasers were willing to pay more than their counterparts for enhancing vehicle attributes. We also investigated the determinants of likely electric vehicle purchase and found a number of demographic characteristics that were statistically significant. |
| Keywords: | Keywords: Electric vehicles, Preferences, Stated choice experiment, Willingness to pay, Random Parameter Logit Model |
| JEL: | Q42 Q51 |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:kob:dpaper:dp2017-21&r=cna |