nep-cna New Economics Papers
on China
Issue of 2019‒04‒01
six papers chosen by
Zheng Fang
Ohio State University

  1. Can China's rural construction land market mitigate the constraint of urban conflict in the rapid urbanization?--Evidence from Deqing and Nanhai By Wen, Lan-Jiao; Zhang, An-lu
  2. Maternal education, parental investment and non-cognitive characteristics in rural China By Jessica E. Leight; Elaine Liu
  3. Effects of air quality on housing prices: evidence from China’s Huai River policy By Liu, Xinghua; Li, Qiang; Chand, Satish
  4. Research of the Effect of China Agricultural Insurance on Agricultural Production By Zhao, Peiru
  5. The evolution of farmland inequality in China:facts and mechanism ——An Empirical study based on a nationally representative survey data By Zhang, Tonglong; Zhang, Linxiu
  6. Cities, Lights, and Skills in Developing Economies By Jonathan I. Dingel; Antonio Miscio; Donald R. Davis

  1. By: Wen, Lan-Jiao; Zhang, An-lu
    Abstract: China is urbanizing at an unprecedented way. Along with the continuous urban expansion, comes out the urban conflicts between supply and demand and substantive value capture between rural and urban areas. The purpose of this study is to examine whether the open access of rural construction land market can mitigate the urban conflicts above. Taking Nanhai and Deqing, the typical areas of rural construction land transaction, as our study area, this work has gathered data both from transaction record and field investigation, estimated the supply and demand function and calculated the optimal supply allocation between governments and collectives based on the theoretical analysis of duopoly market and cournotnash equlibrum. The results indicates that (1) the admission for rural construction land market shifts the construction land market from monopoly to duopoly can improve the market efficiency theoretically.(2) the rural construction land market mitigates the constraint of urban conflict by providing more construction lands and sharing the land incremental value to rural areas.(3) there exists a substitution relationship between government and collective at cournot-nash equilibrium;(4) the local government with land coupon and rural-urban land transactions can occupy greater market share.
    Keywords: Marketing
    Date: 2019–02
  2. By: Jessica E. Leight (Williams College); Elaine Liu (University of Houston)
    Abstract: The importance of non-cognitive skills in determining long-term human capital and labor market outcomes is widely acknowledged, but relatively little is known about how educational investments by parents may respond to children’s non-cognitive characteristics. This paper evaluates the parental response to non-cognitive variation across siblings in rural Gansu province, China, employing a household fixed effects specification; the non-cognitive measures of interest are defined as the inverse of both externalizing challenges (behavioral problems and aggression) and internalizing challenges (anxiety and withdrawal). The results suggest that there is significant heterogeneity with respect to maternal education. More educated mothers appear to compensate for differences between their children, investing more in a child who exhibits greater non-cognitive deficits, while less educated mothers reinforce these differences. Most importantly, there is evidence that these compensatory investments are associated with the narrowing of non-cognitive deficits over time for children of more educated mothers, while there is no comparable pattern in households with less educated mothers.
    Keywords: non-cognitive characteristics, parental investments, intrahousehold resource allocation
    JEL: I24 O15 D13
    Date: 2018–06
  3. By: Liu, Xinghua; Li, Qiang; Chand, Satish
    Abstract: Estimating the economic value of clean air is of significance to both policymakers and private individuals but its quantification has proved difficult. Of the different valuation approaches used, the classic hedonic theory predicts a negative relationship between air quality and housing prices. Existing attempts to quantify this nexus is plagued by problems of endogeneity, mainly arising from omitted variables that confound air pollution with other determinants of housing prices. We employ a regression discontinuity (RD) design to estimate the impact of air pollution on house prices across a river that demarcates regions with and without coal-fired heating emanating from the Huai River Policy. This policy was decreed by the Chinese government in the 1950s that allowed burning of coal at subsidised prices for indoor heating to only the north of the Huai River. Employing quasi-experimental variation in particulate matter of 10 micrometres or less in aerodynamic diameter (PM10) generated by this arbitrary policy and regression discontinuity (RD) design based on distance from Huai River, we estimate the local average treatment effect (LATE) to provide new evidence on the capitalization of PM10 air pollution into housing values. By using panel data of 30 large cities on either side of the river for the period 2006 to 2015, we found that 1 μg/m3 reduction in average PM10 results in an approximately 1 percent increase in housing prices. The results are robust to using parametric and nonparametric estimation methods and adjustment to a rich set of covariates.
    Keywords: Environmental Economics and Policy
    Date: 2019–02
  4. By: Zhao, Peiru
    Abstract: Agricultural insurance has been implemented for more than ten years in China. It is of great significance to analyse the impact of agricultural insurance on agricultural production in order to further design and promote innovative agricultural insurance. From a national perspective, 31 provinces in China are divided into four agricultural insurance development regions according to the level of economic development and agricultural development by cluster analysis. Then panel data model is used to analyse the impact of national and four regions agricultural insurance on agricultural production value. The empirical results show that the gross value of agricultural production is positively and significantly affected by agricultural insurance, planting area, loss ratio, and human capital.
    Keywords: Risk and Uncertainty
    Date: 2019–02
  5. By: Zhang, Tonglong; Zhang, Linxiu
    Abstract: This paper uses a nationally representative survey data, respectively from the perspectives of the contract right and the use right,to estimate the Gini coefficient of farmland inequality from 1996 to 2013 and explore the mechanism of the evolution. We find: A.Whether from the point of the contract right or the use right, the farmland inequality in China has been gradually expanding. Moreover, there has been a tendency to accelerate in recent years. And the trend of concentration of use right is more obvious. B.For the widening inequality of contract right, the reallocation has been almost prohibited since the second round of the contract, which is the most important institutional factor.And the more frequent farmland taking also has been promoted the extend of farmland inequality in recent year. C.For the widening inequality of use right, it is mainly contributed by the distribution of contract right. The farmland transfer based on market motivation is also improved the centralization of use right.However, it has not been very effective so far and new institutional changes are needed to support it. D. In the long run, the concentration of use right is still subject to the distribution of the contract right and less influenced by other economic factors. The evolution process will be gradual for a long time.
    Keywords: Land Economics/Use
    Date: 2019–02
  6. By: Jonathan I. Dingel; Antonio Miscio; Donald R. Davis
    Abstract: In developed economies, agglomeration is skill-biased: larger cities are skill-abundant and exhibit higher skilled wage premia. This paper characterizes the spatial distributions of skills in Brazil, China, and India. To facilitate comparisons with developed-economy findings, we construct metropolitan areas for each of these economies by aggregating finer geographic units on the basis of contiguous areas of light in nighttime satellite images. Our results validate this procedure. These lights-based metropolitan areas mirror commuting-based definitions in the United States and Brazil. In China and India, which lack commuting-based definitions, lights-based metropolitan populations follow a power law, while administrative units do not. Examining variation in relative quantities and prices of skill across these metropolitan areas, we conclude that agglomeration is also skill-biased in Brazil, China, and India.
    JEL: C8 O1 O18 R1
    Date: 2019–03

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