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on China |
| By: | Ida Brzezinska |
| Abstract: | This paper uses firm-level data from the Chinese Annual Survey of Industrial Firms (CASIF) for the years 1998-2007 to analyse the impact of the household registration system (Hukou) reform in China on monopsony power of firms. I adopt a multiple-period difference-in¬differences framework to exploit the non-uniform labour market reform implementation. By comparing firms in cities that adopted the reform to firms in cities that did not, I find that relaxing restrictions on geographical labour mobility decreased firms’ monopsony power overall. Further heterogeneity analysis suggests that the effect can be decomposed into two offsetting forces: firms in big cities saw their monopsony power increase, while it diminished for firms in small cities. Consistent with a decrease in monopsony power, firms in reform cities spent 26% more on the worker housing fund and 7% more on unemployment insurance as a result of the Hukou reform. I find that the Hukou reform is positively related with both marginal and average products of labour. |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:csa:wpaper:2021-12&r= |
| By: | Xiao Shuguang; Lai Xinglin |
| Abstract: | While the traditional monetary transmission mechanism usually uses the equity and capital markets as monetary reservoirs, due to China's unique fiscal and financial system, the real estate sector has become China's 'invisible' non-traditional monetary reservoir for many years. Firstly, based on the perspective of the real estate sector as a monetary reservoir, this paper constructs a dynamic general equilibrium model that includes fiscal investment and financing and uses Chinese housing market data as well as central bank data on refinancing rates to financial institutions and GDP data for parameter estimation to reveal the laws of the monetary transmission mechanism of the monetary reservoir-fiscal financing investment: firstly, an asset can be financed as long as it satisfies the three criteria of a leveraged trading system:First,there is a commitment to pay and the existence of government utility; second, local governments have an incentive to carry out credit expansion and investment and also financing operations through money pool assets, and there is a financing effect when the tax return on fiscal investment is higher than fiscal financing; third, the bubble effect is greater than the financing effect and it will push the monetisation of fiscal deficits when the financing effect is greater than the bubble effect and then the economic growth masks the credit expansion of local governments.To address the problem of monetary transmission mechanism under the perspective of real estate monetary reservoir, this paper carries out the design of a de-bubble financing mechanism for monetary reservoir assets. |
| Date: | 2021–11 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2111.15327&r= |
| By: | Nora Yuqian Chen (Harvard University [Cambridge]); Yucheng Huang (PSE - Paris School of Economics - ENPC - École des Ponts ParisTech - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Zhexun Fred Mo (PSE - Paris School of Economics - ENPC - École des Ponts ParisTech - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | What are the determinants of redistributive preferences where capitalism meets post-socialism? To examine the sources of conflicting preference combinations of tolerating the income gap and demanding redistributive policies in transitional economies as suggested in previous research, we conduct an online experiment with a nationally representative sample of 2,500 Chinese citizens. We find that Chinese citizens exhibit strong support for real-stake inequality-reducing policies and the government's duty to regulate income distribution. Surprisingly, priming the "unmeritocratic component" of the income generating process in either becoming rich or staying poor makes them significantly less supportive of redistributive policies targeted explicitly at taxing the rich and government duties in regulating the income gap. This effect is mainly driven by those who self-reported to have relatively low economic pressure. We conjecture that such "libertarian" fairness views, and the strong demand for government intervention to "redistribute," could both originate from extreme poverty aversion and wealth aspiration. Wealth aspiration drives a desire for property ownership, making it more likely to justify any means in acquiring property; meanwhile, poverty aversion calls for strong government intervention in lifting the poor up. We argue that such a mechanism could be most saliently exemplified in a post-socialist economic regime with sustained high growth rates and high social mobility. |
| Keywords: | Redistribution,Fairness Preferences,Income Inequality,Tax Salience,Social Mobility,Government Duty,Beliefs |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:psewpa:halshs-03496033&r= |
| By: | Mr. Zhongxia Jin; Haobin Wang; Yue Zhao |
| Abstract: | Although foreign exchange (FX) futures markets have been relatively prevalent in many developed countries and emerging markets, some other countries, including China, have not established such a market partly due to concerns about its ability to amplify the risk of the underlying exchange rate’s volatility. This paper analyzes the impact of establishing FX futures markets on the volatility of the underlying spot rate based on data from major developing countries. Our analysis shows that FX futures market is not empirically associated with an increase in FX volatility and in some cases even with a decrease in FX volatility. Compared with the over-the-counter (OTC) market, the FX futures markets can better meet the hedging needs of small and medium-sized enterprises due to their standardized products, greater transparency, and stronger oversight. Going forward, it is in China’s interests to accelerate the establishment of an FX futures market and allow for a more market-based approach to ensure the stability and sustainability of such a market. |
| Keywords: | FX futures market, exchange rate, market-based regulation |
| Date: | 2021–11–12 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2021/268&r= |
| By: | Shigeto Kitano (Research Institute for Economics and Business Administration, Kobe University, JAPAN); Yang Zhou (Graduate School of Economics, Kobe University, JAPAN) |
| Abstract: | We empirically assess the effects of China's capital controls on individual asset categories by using the local projection method. Our results show stark differences among individual asset categories. Capital controls on equity and financial credits affect both the corresponding inflows and outflows significantly, whereas those on the other three asset categories (bonds, commercial credits, and direct investment) do not. |
| Keywords: | Capital controls; China; Local projection |
| JEL: | F38 F32 G15 |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:kob:dpaper:dp2021-25&r= |
| By: | John Knight; Ramani Gunatilaka |
| Abstract: | The effect of inequality on happiness should intrigue social scientists. Of the many dimensions of income inequality, we explore four, analysing a rich data set for China. Does actual or perceived inequality have a greater effect on happiness? We find that perceptions of inequality are the more important. How broad is the reference group with which people compare themselves? They report that it is narrow; and indeed narrowly defined inequality has the greater effect on happiness. Do perceptions of the degree of fairness of inequality matter? They do, as they ameliorate the adverse effect of inequality on happiness, especially for the poorest. Is it self-centred or community-based inequality which affects happiness? Both measures have significant effects, but in opposite directions. The research and policy implications are discussed. |
| Keywords: | China; Happiness; Inequality; Reference group; Relative |
| JEL: | D03 D63 I31 Z13 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:csa:wpaper:2021-11&r= |
| By: | Shixi Kang; Jingwen Tan |
| Abstract: | Enhancing residents' willingness to participate in basic health services is a key initiative to optimize the allocation of health care resources and promote equitable improvements in group health. This paper investigates the effect of education on resident health record completion rates using a system GMM model based on pseudo-panel that consisting of five-year cross-sectional data. To mitigate possible endogeneity, this paper controls for cohort effects while also attenuating dynamic bias in the estimation from a dynamic perspective and provides robust estimates based on multi-model regression. The results show that (1) education can give positive returns on health needs to the mobile population under the static perspective, and such returns are underestimated when cohort effects are ignored; (2) there is a significant cumulative effect of file completion rate under the dynamic perspective, and file completion in previous years will have a positive effect on the current year. (3)The positive relationship between education and willingness to make health decisions is also characterized by heterogeneity by gender, generation, and education level itself. Among them, education is more likely to promote decision-making intentions among men and younger groups, and this motivational effect is more significant among those who received basic education. |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2112.01046&r= |
| By: | Li, Minghao; Zhang, Wendong |
| Abstract: | US-China trade relations have implications for global nitrogen and phosphorus surpluses, and increasing blue water demand. The case shows that trade policy analysis needs to integrate environmental considerations. |
| Date: | 2021–08–12 |
| URL: | http://d.repec.org/n?u=RePEc:isu:genstf:202108120700001837&r= |