VoxChina

A Bridge on Economic Issues between China and the World

[VoxChina @VoxChina2017]

When non-state banks turn to wholesale funding, monetary policy easing is transmitted more effectively to productive firms, but the banking system also becomes more fragile in economic downturns.
https://t.co/OHu6vORWlF

[VoxChina @VoxChina2017]

Panle Jia Barwick, Hyuk-soo Kwon, Shanjun Li,Nahim Bin Zahur found a learning rate of 7.5% in EV battery production, i.e., doubling the cumulative output lowers the unit cost by 7.6%. LBD explains 36% of battery cost reduction observed during 2013–2020.

https://t.co/3NI0YhhY2b

[VoxChina @VoxChina2017]

In 2020 local governments in China began issuing digital coupons to stimulate spending in targeted categories such as restaurants and supermarkets. This article finds coupons caused large increases in spending of 3.1–3.3 yuan per yuan spent by government.
https://t.co/mvqVLVRqaf

[VoxChina @VoxChina2017]

Using a unique quasi-experiment, this article shows that rising house prices reduces birth rates, especially among rural residents.

https://t.co/JH5mmQqokB

[VoxChina @VoxChina2017]

This article provides descriptive facts about Chinese government VC funds and their role in financing AI sector. It enumerates the distinctions between government and private VC, and examines their interactions and differences empirically.

https://t.co/uNzPyoLC86

[VoxChina @VoxChina2017]

China’s role in the global economy has been a topic of intense academic and policy debate. This article describes the factors driving the evolution of China’s production and trade patterns using firm-level data and a quantitative model.

https://t.co/xXhFTQPQNT

[VoxChina @VoxChina2017]

China’s social security system provides a basic pension and limited coverage for health and long-term care risks. This article describes results from a survey experiment of retirement insurance preferences in China.

https://t.co/UGp5IL34It

[VoxChina @VoxChina2017]

The judicial centralization reform was gradually rolled out in China since 2014. It makes local governments more likely to lose lawsuits against their contractors; creditors are indirectly disadvantaged as their residual claims become less valuable. https://t.co/xPAfLwZpve

[VoxChina @VoxChina2017]

A six-month randomized control trial at https://t.co/hgPjNCMZCK involving 1,612 employees revealed that hybrid working significantly improves job satisfaction and reduces attrition rates by one-third without harming performance. https://t.co/l72YGjKESQ

[VoxChina @VoxChina2017]

From 2003 -08 China’s New Cooperative Medical Scheme (NCMS) provided health insurance to 800 million rural residents. It saved over a million lives yearly at its peak and contributed to a 78% increase in China’s life expectancy during that time.
https://t.co/0umPwWFKrO

[VoxChina @VoxChina2017]

Chinese local governments’ borrowing capacity was restricted in 2017 and thus had to deleverage. The article below found that it caused liquidity squeeze among non-state-owned-enterprise (non-SOE) contractors, suggesting favorable treatment of SOEs.

https://t.co/8oHXoW6Jna

[VoxChina @VoxChina2017]

Rice farming in south China and wheat farming in North foster collective vs individualist culture respectively. Collectivist culture associated with rice farming leads to more stock investment& lottery ticket purchases, while reducing purchase of insur.

https://t.co/MFRkifEt03

[VoxChina @VoxChina2017]

New VoxChina article below traces the rise of shadow banking and the attendant financial fragility in China to the intensified deposit competition following the global financial crisis (GFC).
https://t.co/0x2sl7mQzF

[VoxChina @VoxChina2017]

An analysis of the costs and benefits of China’s national CO2 emission trading system and the comparison with a cap-and-trade alternative by Larry Goulder and coauthors:
https://t.co/83UfU5wPKa

[VoxChina @VoxChina2017]

PKU Guanghua Dean Qiao Liu & Jiapin Deng find that local government-driven finance backed by revenues from land sales exacerbates the misallocation problem, while the remaining part of finance significantly improves allocative efficiency. @PKU1898

https://t.co/s4JRoRHM6K

[VoxChina @VoxChina2017]

Researchers find education expenditures constitute a substantial portion of hh income in China, averaging 17.1%; surprisingly in-school expenses constitute majority of education costs (73%), contrary to the focus on tutoring in media & policy discussions.
https://t.co/UHlpEEiiV8

[VoxChina @VoxChina2017]

VoxChina post by Prof Jun Pan and Qing Peng @ SAIF shows that China's equity market is very much policy driven. There is as significant positive stock return on Chinese equity over 48-hr window before the announcement of top government meetings.

https://t.co/x4giOl9jsF

[VoxChina @VoxChina2017]

China has invested heavily in infrastructure. This VoxChina piece describes how a landmark “36 Clauses” reform in 2005, which forged a more favorable market environment, impacted the return of infrastructure investment on the productvty of private firms.
https://t.co/JwowvQ9HY5

[Hanming Fang @HanmingF]

I have been asked recently about the risk of "Japanification" of the Chinese economy. Here are my current views, as expressed in an introductory essay with Marshall Meyer for a book project. 1/11

[Hanming Fang @HanmingF]

China needs a New Deal to drastically increase household consumption. Continuing to rely on infrastructure investment will exacerbate overcapacity when exports are unlikely to grow further in post globalization era. Time to shift the balance from I to C for sustainable growth.