Research Papers

Research Papers

The Economic Cost of Locking down like China: Evidence from City-to-City Truck Flows

(2022)

Jingjing Chen, Wei Chen, Ernest Liu, Jie Luo, and Zheng (Michael) Song

Containing the COVID-19 pandemic by non-pharmacological interventions is costly. Using high-frequency, city-to-city truck flow data, this paper estimates the economic cost of lockdown in China, a stringent but effective policy. By comparing the truck flow change in the cities with and without lockdown,...

COVID-19, firm exposure, and firm value: A tale of two lockdowns

(2020)

Haoyuan Ding, Haichao Fan, Shu Lin

We examine the stock market responses to two symbolic events in the outbreak of COVID-19: (1) the lockdown of Hubei province; and (2) the containment of the disease in China and its spread to overseas. Overall, market in China responded negatively (positively) to the first (second) event. Regression...

Non-Price Discrimination by a Prejudiced Platform

(2017)

Ming Gao, Travis Ng

Recent lawsuits and anecdotal evidence suggest that some platforms discriminate against certain users through non-price practices, discouraging their participation without directly increasing revenue. We show that a monopolist two-sided platform with a prejudice against certain users - modeled as more...

How Does the Market View China's Anti-Corruption Campaign?--Evidence from the Stock Market

(Forthcoming)

Kang Shi, Haoyuan Ding, Hanming Fang, Shu Lin

Excess Labor Supply, Structure Change and Real Exchange Rate

(Forthcoming)

Kang Shi, Jiandong Ju, Yifu Justin Lin, Qing Liu

Liquidity Regulation and Unintended Financial Transformation in China

(2016)

Kinda Cheryl Hachem, Zheng Michael Song

Many countries try to mitigate business cycle fluctuations by regulating the activities of their banks. We develop a theoretical framework to study the endogenous response of the banking sector and the implications for the aggregate economy. Under fairly mild conditions, we find that stricter liquidity...

Identifying Capital Misallocation

(2015)

Zheng (Michael) Song, Guiying Laura Wu

Resource misallocation lowers aggregate productive effi ciency. The existing literature often infers the magnitude of misallocation from the dispersion of average revenue products. However, the methodology is subject to several identification issues.

SOE and Chinese RBC

(2014)

Daoju Peng, Kang Shi, Juanyi (Jenny) Xu

Chinese real business cycle (RBC) exhibits a unique pattern, which is characterized by moderate consumption volatility, substantially low investment volatility, and acyclical trade balance. These features are quite different from business cycles in other emerging markets and cannot be explained by...

Trade Reforms and Global Current Account Imbalances

(2012)

Jiandong Ju, Kang Shi, Shang-Jin Wei

While a reduction in import barriers in a partial equilibrium may be thought to lead to an increase in imports and a reduction in trade surplus, the general equilibrium effect can go in the opposite direction. We study how trade reforms affect current accounts by embedding a modified Heckscher-Ohlin...

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