nep-cna New Economics Papers
on China
Issue of 2022‒06‒13
seven papers chosen by
Zheng Fang
Ohio State University

  1. Housing Unaffordability and Adolescent Subjective Well-Being in China By Nie, Peng; Li, Qiaoge; Sousa-Poza, Alfonso
  2. Dual Circulation and Population Mobility during the Pandemic in China By Lee, Wang-Sheng; Tran, Trang My; Yu, Lamont Bo
  3. Omnia Juncta in Uno*: foreign powers and trademark protection in Shanghai's concession era By Laura Alfaro; Cathy Bao; Maggie X. Chen; Junjie Hong; Claudia Steinwender
  4. Is the American Soft Power a Casualty of the Trade War? By Haichao Fan; Yichuan Hu; Lixin Tang; Shang-Jin Wei
  5. Does Public Employment Affect Household Saving Rates? Evidence from Chinese Household Data By Can Xu; Andreas Steiner
  6. Market Making via Reinforcement Learning in China Commodity Market By Junshu Jiang; Thomas Dierckx; Duxiang Xiao; Wim schoutens
  7. Optimal Travel Restrictions in Epidemics By Shi, Wei; Qiu, Yun; Yu, Pei; Chen, Xi

  1. By: Nie, Peng (Xi’an Jiaotong University); Li, Qiaoge (Xi’an Jiaotong University); Sousa-Poza, Alfonso (University of Hohenheim)
    Abstract: Using the 2010-2018 waves of the China Family Panel Studies, we investigate the impact of housing unaffordability on subjective well-being (SWB) among Chinese adolescents aged 10-15. Using a combined methodology of propensity score matching and fixed effects and instrumental variable estimations, we show that housing unaffordability leads to higher levels of depression, with more pronounced impacts among older adolescents (aged 13-15), those from migrant and urban families, and those living in regions with high housing prices and expensive living costs. These results are robust not only to alternative housing unaffordability and SWB measures but to a series of estimation approaches that control for endogeneity. An additional structural equation modelling analysis of underlying pathways further reveals that this housing unaffordability-SWB relation is mediated by paternal depression and (lower) adolescent trust in parents.
    Keywords: housing unaffordability, depression, adolescents, China
    JEL: D10 I10 I31 J13 R21
    Date: 2022–05
  2. By: Lee, Wang-Sheng (Monash University); Tran, Trang My (Monash University); Yu, Lamont Bo (University of Macau)
    Abstract: We use high-frequency data from location-based mobile phone records to measure domestic air travel patterns of the Chinese population during the Covid-19 pandemic. The travel and tourism industry is a key driver of China's domestic economy and data from this industry helps serve as an objective proxy for domestic economic activity during the pandemic. Our results show that except for some periods of intense mobility restrictions, relative to travel patterns in 2019, mobility in fact increased in China from mid-2020 onwards. This increase in domestic air travel is likely due to a combination of factors: China's control and management of the Delta variant, China's new "dual circulation" development paradigm, and a pent-up demand for international travel that is not permitted.
    Keywords: China, COVID-19, dual circulation, mobile phone data, mobility
    JEL: C31 I12 I18 R11 R41
    Date: 2022–05
  3. By: Laura Alfaro; Cathy Bao; Maggie X. Chen; Junjie Hong; Claudia Steinwender
    Abstract: We investigate how firms adapt to trademark protection, an extensively used but underexamined form of IP protection, by exploring a historical precedent: China's trademark law of 1923 - an unanticipated and disapproved response to end foreign privileges in China. By exploiting a unique, newly digitized firm-employee-level dataset from Shanghai in 1872-1941, we show that the trademark law shaped firm dynamics on all sides of trademark conflicts. The law spurred growth and brand investment among Western firms with greater dependence on trademark protection. In contrast, Japanese businesses, which had frequently been accused of counterfeiting, experienced contractions while attempting to build their own brands after the law. The trademark law also led to new linkages with domestic agents, both within and outside the boundaries of Western firms, and the growth of Chinese intermediaries. At the aggregate level, trademark-intensive industries witnessed a net growth in employment and the number of product categories. A comparison with previous attempts by foreign powers - such as extraterritorial rights, bilateral treaties, and an unenforced trade-mark code - shows that those alternative institutions were ultimately unsuccessful. *Omnia Juncta in Uno ("All Joined in One") was the Latin motto on the municipal seal of the Shanghai International Settlement (1843-1941) and signified the joint governance of foreign powers in the settlement.
    Keywords: trademark, firm dynamics, intermediaries, intellectual property institutions
    Date: 2022–12
  4. By: Haichao Fan; Yichuan Hu; Lixin Tang; Shang-Jin Wei
    Abstract: The US trade war against China in 2018–2019 can either enhance or diminish the US soft power in China, depending on whether it is recognized as legitimate by Chinese citizens. We study how the viewership of US movies—an important element of the US soft power—is affected by the trade war, utilizing variations across Chinese cities in the exposure to the Trump tariffs. We find a significant reduction in US movie revenue in regions more exposed to the Trump tariffs, but no corresponding reduction in the consumption of non-US movies. This is corroborated by a decline in online search for US movies, US tourist destinations, and US branded sports shoes. The aversion to US movies appears to persist at least to 2021. The effect is somewhat milder for more affluent people.
    JEL: F10 F6
    Date: 2022–04
  5. By: Can Xu; Andreas Steiner
    Abstract: This paper investigates the impact of public employment on household saving rates in China using representative household-level data. After controlling for a series of variables such as income, risk attitude, financial literacy, and demographic factors, we show that households headed by public employees have higher saving rates than other households. This positive association holds after controlling for self-selection bias. Public employees are more likely to save for their children and they have a higher saving capacity than non-public employees due to better social security. Our results contribute to a better understanding of Chinese household saving rates, which is of great importance given their extremely high level in international comparison.
    Keywords: public employment, household saving rates, Chinese economy
    JEL: D14 E24 H31 G51
    Date: 2022
  6. By: Junshu Jiang; Thomas Dierckx; Duxiang Xiao; Wim schoutens
    Abstract: Market maker is an important role in financial market. A successful market maker should control inventory risk, adverse selection risk, and provides liquidity to the market. Reinforcement Learning, as an important methodology in control problems, enjoys the advantage of data-driven and less rigid assumption, receive great attentions in market making field since 2018. However, although China Commodity market, which has biggest trading volume on agricultural products, nonferrous metals and some other sectors, the study of applies RL on Market Making in China market is still rare. In this thesis, we try to fill the gap. We develop the Automatic Trading System and verify the feasibility of applying Reinforcement Learning in China Commodity market. Also, we probe the agent behavior by analyzing how it reacts to different environment conditions.
    Date: 2022–05
  7. By: Shi, Wei (Jinan University); Qiu, Yun (Jinan University); Yu, Pei (Rice University); Chen, Xi (Yale University)
    Abstract: Travel restrictions are often imposed to limit the spread of infectious diseases. As uniform restrictions can be inefficient and incur unnecessarily high costs, this paper examines the optimal design of restrictions that target specific travel routes. We propose a model with trade-offs between costs of infections and costs of travel restrictions, where decisions are made with or without coordination between local jurisdictions and provide a computational feasible way to solve the optimization problem. We illustrate the model using the COVID-19 data in China. When travel restrictions target key routes, only around 5% of the possible routes need to be closed in order to have the same number of confirmed COVID-19 cases in the initial outbreaks. Uncoordinated travel restrictions ignore policy externalities and therefore are sub-optimal in comparison to coordinated restrictions.
    Keywords: transmission, public health, economic cost, coordination, externality, COVID-19
    JEL: I18 R1 C21 C6
    Date: 2022–05

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