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on China |
| By: | Yang Liu (Department of Risk Management, University of Hohenheim, Stuttgart, Germany) |
| Abstract: | Recent years have witnessed a dramatic increase in real estate prices in mainland China. Current research mainly takes the Chinese housing market as an independent market and focuses on potential future growth or the increasing asset bubble in this market. This research, however, studies the short- and long-run interrelationship between the housing market and two other major markets in mainland China - the stock market and the domestic consumption market - from 2005 to 2019. In addition, the codependency between Chinas economy and the real estate market is also examined. After detecting the structural breaks in the time series of property price index by using the recursive CUSUM test, the whole examining period is divided into sub-periods. In each subperiod, the variance decomposition and Granger causality tests are used to identify the timevarying short- and long-run interdependencies between these markets. Results indicate that there is time-varying relation between property prices and stock indexes, and the correlation between property prices and stock indexes becomes weaker over time. In terms of housing market and the domestic consumption market, a weak relation between these two markets is observed over the whole period. These findings are of vital importance for China domestic investors to help them understand and diversify the risk of their portfolios, which are mainly composed by property and stock assets. In addition, these results offer new insight into the impact of the housing market on the domestic consumption market within Chinese context. This further aids the Chinese government in regulating these three markets more efficiently and avoiding any unwanted domino effect between them. |
| Keywords: | Variance decomposition, Stock market, Property market, Domestic consumption market, China. |
| JEL: | C12 R21 R31 |
| Date: | 2020–04 |
| URL: | http://d.repec.org/n?u=RePEc:aly:journl:202051&r=all |
| By: | Shi, Tie; Zhu, Wenzhang; Fu, Shihe |
| Abstract: | The Rosen-Roback spatial equilibrium theory states that cross-city variations in wages and housing prices reflect urban residents’ willingness to pay for urban amenities or quality of life. This paper is the first to quantify and rank the quality of life in Chinese cities based on the Rosen-Roback model. Using the 2005 1% Population Intercensus Survey data, we estimate the wage and housing hedonic models. The coefficients of urban amenity variables in both hedonic models are considered the implicit prices of amenities and are used as the weights to compute the quality of life for each prefecture city in China. In general, provincial capital cities and cities with nice weather, convenient transportation, and better public services have a higher quality of life. We also find that urban quality of life is positively associated with the subjective well-being of urban residents. |
| Keywords: | Spatial equilibrium, hedonic model, urban amenity, quality of life, life satisfaction |
| JEL: | H44 J31 J61 R13 R23 R31 |
| Date: | 2021–01–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:105266&r=all |
| By: | Jinsong Li (Graduate School of Economics, Kobe University) |
| Abstract: | This study investigates the effects of the plastic waste ban on local air quality in China. Using city-level daily ozone concentrations, we examine whether the pollution levels differ between coastal and inland cities in China after the import ban. Obtained results show that the daily ozone concentration lowered by 2.2% in coastal cities after the import ban. Additional analyses suggest that the effect is heterogeneous: the reduction is larger in later period, larger in cities with dirty baseline pollution, and smaller in cities with higher rural population density. These results are suggestive of the impact of import ban as an indirect policy instrument. |
| Date: | 2021–02 |
| URL: | http://d.repec.org/n?u=RePEc:koe:wpaper:2104&r=all |
| By: | Giles, John T. (World Bank); Meng, Xin (Australian National University); Xue, Sen (Jinan University); Zhao, Guochang (Southwest University of Finance and Economics, Chengdu) |
| Abstract: | This paper uses a randomized information intervention to shed light on whether poor understanding of social insurance, both the process of enrolling and costs and benefits, drives the relatively low rates of participation in urban health insurance and pension programs among China's rural-urban migrants. Among workers without a contract, the information intervention has a strong positive effect on participation in health insurance and, among younger age groups, in pension programs. Migrants are responsive to price: in cities where the premia are low relative to earnings, information induces health insurance participation, while declines are observed in cities with high relative premia. |
| Keywords: | migration, social insurance, information, randomised controlled trial |
| JEL: | H53 H55 J46 J61 O15 O17 O53 P35 |
| Date: | 2021–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp14093&r=all |
| By: | Fungáčová, Zuzana; Kerola, Eeva; Weill, Laurent |
| Abstract: | This work examines the impact of bank efficiency on the bank lending channel in China. Using a sample of 175 Chinese banks over the period 2006–2017, we investigate how the reaction of the loan supply to monetary policy actions depends on a bank’s efficiency. While bank efficiency does not exert an impact on the effectiveness of monetary policy transmission overall, it does favor the transmission of monetary policy for banks with low loan-to-deposit ratios. In addition, the expansion of shadow banking activities has been associated with a positive impact of bank efficiency on monetary policy transmission. These results suggest that bank efficiency may influence the bank lending channel in certain cases. |
| JEL: | E52 G21 |
| Date: | 2021–02–08 |
| URL: | http://d.repec.org/n?u=RePEc:bof:bofitp:2021_003&r=all |
| By: | Lai , Jennifer (Guangdong University of Foreign Studies); McNelis, Paul (Fordham University) |
| Abstract: | This paper shows that signals from the offshore Hong Kong, China spot market for the currency of the People’s Republic of China (PRC), the renminbi (listed as CNH), directly affect the volatility of share prices of PRC banks and the overall risks to banking stability in the country. This is especially so amid heightened uncertainty about global trade of the PRC. Thus, CNH market volatility is a leading indicator of onshore PRC banking sector volatility. The results suggest that further offshore exchange market movements arising out of news such as increasing trade friction with the United States will generate greater volatility in the PRC’s banking sector. Far from being a shock absorber for the financial system of the PRC, the CNH market appears to be a shock transmitter of risk from offshore economic policy uncertainty to the PRC’s banking system. |
| Keywords: | banking stability of the PRC; CNH market; currency of the PRC; exchange rate pressures; offshore exchange markets |
| JEL: | F31 G21 O24 |
| Date: | 2019–12–20 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbewp:0602&r=all |
| By: | Michael Greenstone; Guojun He; Shanjun Li; Eric Zou |
| Abstract: | The decade from 2010 to 2019 marked a significant turning point in China’s history of environmental regulation and pollution. This article describes the recent trends in air and water quality, with a focus on the five years since China declared a “war on pollution” in 2014. It summarizes the emerging literature that has taken advantage of accompanying improvements in data availability and accuracy to document sharp improvements in environmental quality, especially local air pollution, and understand their social, economic, and health consequences. |
| JEL: | Q50 Q53 Q56 |
| Date: | 2021–02 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:28467&r=all |
| By: | Huiying Ye (China University of Petroleum, IFPEN - IFP Energies nouvelles - IFPEN - IFP Energies nouvelles); Qi Zhang (China University of Petroleum); Xunzhang Pan (China University of Petroleum); Arash Farnoosh (IFP School) |
| Abstract: | The topic of climate change has aroused increasingly widespread concern around the world. Under the agreement at the 21st Conference of the Parties of the United Nations Framework Convention on Climate Change (UNFCCC), covened in Paris, France (Paris Agreement), which requires all Parties to undertake emission reductions, the developing countries who were once exempted from emission reduction obligations are now becoming more and more important. This study focuses on mitigation actions in China, the largest carbon emitter, as well as the largest developing country in the world. Specifically, we examine Chinese Certified Emission Reduction (CCER) projects. The objective is to compare the reduction efficiency of three types of projects: simple abatement and completely renewable energy alternative projects at the supply side and demand side projects. From market-induced carbon leakage point of view, a dual market equilibrium model was built, with results showing that the key factors affecting the leakage rates are price elasticities of both demand and supply sides and market share parameters. In most cases, renewable energy alternative projects show the least leakage rate while demand side projects show the highest. Sensitivity analysis finds that leakage rates for the three types of projects are more sensitive to price elasticity parameters than market share parameters. Moreover, factors Edec (electricity price elasticity of coal demand from coal-fired generation) and Ede (electricity price elasticity of electricity demand) affect not only the leakage rate of each project but also the comparative results between them. Although our study is based on China, the theoretical analysis is applicable in other regional voluntary emission reduction markets around the world. So, a systematic approach to comprehensively analyze the issue is summarized, based on which, we recommend two mitigation strategies to cope with the issue in offset projects in order to give managerial insights for the government. Firstly, the calculated leakage rates for different types of projects provide a new perspective to evaluate various offset projects, thus helping consider project types for priority validation. Secondly, we suggest to establish an accurate and classified discount coefficient system according to the project types to deal with the issue; the sensitivity analysis is helpful to find the most influential factors. A top-down approach to implement the strategy is proposed. |
| Keywords: | Market-induced carbon leakage,Certified emission reduction projects,Reduction efficiency,Comparison |
| Date: | 2020–08 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03114163&r=all |