In 2013, China launched a landmark program to monitor air quality and disclose real-time data, significantly increasing the public’s access awareness of pollution information. The triggered cascading behavioral changes such as stronger avoidance outdoor exposure increased spending on protective products. These responses mitigated mortality impact pollution. Conservative estimates indicate that program’s health benefits outweigh costs by an order magnitude. findings highlight improving public...

This paper is concerned with tests and confidence intervals for parameters that are not necessarily point identified defined by moment inequalities. In the literature, different test statistics, critical-value methods, implementation methods (i.e., asymptotic distribution versus bootstrap) have been proposed. this paper, we compare these methods. We provide a recommended statistic, selection critical value, method. data-dependent procedures choosing key tuning parameter κ size-correction factor η.

This study documents the presence of local protectionism and quantifies its impacts on market competition social welfare in context China’s automobile market. A salient feature auto is that vehicle models by joint ventures state-owned enterprises command much higher shares their headquarter provinces than at national level. Through county border analysis, falsification tests, a consumer survey, we uncover protectionist policies such as subsidies to brands primary contributing factor observed...

Abstract This paper exploits the universe of credit- and debit-card transactions in China during 2013-2015 provides first nationwide analysis healthcare cost PM2.5 for a developing country. We leverage spatial spillovers from long-range transport to generate exogenous variation local pollution employ flexible distributed lag model capture semiparametrically dynamic response exposure. find significant impacts on spending both short medium terms. A 10 μg/m3 decrease would reduce annual by over...

Abstract Although entry regulations are ubiquitous across countries, comprehensive evaluations on how such affect firm dynamics and productivity lacking. We examine a 2012-2014 pilot program in Guangdong (which later became national policy) that was designed to reduce registration costs encourage entrepreneurial activities. Using administrative data firms' business registrations annual reports, our analysis shows the reform increased by 25% exit 8.7% manufacturing sector. The of post-reform...

Abstract Industrial policies are widely used across the world. In practice, designing and implementing these is a complicated task. this paper, we assess long-term performance of different industrial policy instruments, which include production subsidies, investment entry consolidation policies. To do so, examine recent in China aiming to propel country’s shipbuilding industry largest globally. Using firm-level data from 1998 2014 dynamic model firm entry, exit, investment, production, find...

In this paper, we consider the empirical problem of estimating underlying profit function firms from “revealed choice” data on entry in a cross-section oligopoly markets. One faced earlier literature is multiple equilibrium, which makes traditional maximum likelihood estimation (MLE) techniques difficult to implement. The equilibria serious enough that Sutton (2000), for example, suggests giving up parameter case realistic models. However, Manski and co-authors (e.g. Tamer (2002)) encourage...

During 2013-2014, China launched a nationwide, real-time air quality monitoring and disclosure program, watershed moment in the history of its environmental regulations. We present first empirical analysis this natural experiment by exploiting staggered implementation across cities. The program has transformed landscape China's protection, substantially expanded public access to pollution information, dramatically increased households' awareness about issues. These transformations, turn,...

The US airline industry went through tremendous turmoil in the early 2000s, with four major bankruptcies, two mergers, and various changes network structure. This paper presents a structural model of estimates impact demand supply on profitability. Compared 1999, we find that, 2006, air-travel was 8 percent more price sensitive, passengers displayed stronger preference for nonstop flights, marginal cost significantly favored flights. Together expansion low-cost carriers, they explain than 80...

This article studies the consequences of fixed commissions and low entry barriers in Greater Boston's real estate brokerage industry from 1998–2007. We find that agent reduces average service quality use a dynamic empirical model to study inefficiency current market structure. To accommodate large state space, we approximate value function using sieves impose Bellman equation as an equilibrium constraint. Our results suggest 50% cut would result 40% fewer agents, social savings amount 23%...

Developing and fast-growing economies have some of the worse air pollution in world, but there is a lack systematic evidence on health especially morbidity impact these countries. Based universe credit debit card transactions China from 2013 to 2015, this paper provides our knowledge first analysis cost PM2.5 for entire population developing country. To address potential endogeneity exposure, we construct an instrumental variable by modeling spatial spillovers due long-range transport. We...

Despite the historic prevalence of industrial policy and its current popularity, few empirical studies directly evaluate welfare consequences.This paper examines an important in China 2000s, aiming to propel country's shipbuilding industry largest globally.Using comprehensive data on shipyards worldwide a dynamic model firm entry, exit, investment, production, we find that scale was massive boosted China's domestic world market share dramatically.On other hand, it created sizable distortions...

This paper uses the universe of cellphone records from a Chinese telecommunication provider for northern city to examine role information exchange in urban labor markets. We provide first direct evidence increased communication among referral pairs around job changes. Information provided by social contacts mitigates asymmetry and improves market performance. (JEL D82, J62, O18, P23, P25, R23, Z13)

We estimate an equilibrium sorting model of housing location and commuting mode choice with endogenous traffic congestion to evaluate urban transportation policies. Leveraging fine-scale data from travel diaries transactions identifying residents' home work locations, we recover rich preference heterogeneity over both residential decisions. While different policies produce the same reduction, their impacts on social welfare differ drastically. In addition, undermines reduction under driving...

We investigate the pass-through of electric vehicle (EV) subsidies in 13 countries that account for 95 percent global EV sales from 2013 to 2020. Our results indicate high rates 70-80 on average. Pass-through is highest firms sell same models across multiple countries, consistent with uniform pricing by these firms, as well avoidance third-party arbitrage. find suggestive evidence higher tax incentives than direct consumer subsidies.

Industrial policy has been used throughout history in some form or other by most countries. Yet, it remains one of the contentious issues among makers and economists alike. In part, this is because empirical evidence on whether how should be implemented slim. Scant data government subsidies, conflicting theoretical arguments, need to account for governments’ short long-run objectives, render research particularly challenging. article, we outline a theory-based methodology that relies...

Electric vehicle (EV) battery costs have declined by over 90% in the past decade. This study investigates role of learning-by-doing (LBD) driving this reduction and its interaction with two major government policies-consumer subsidies local content requirements. Leveraging rich data on EV models suppliers, we develop estimate a structural model global industry that incorporates heterogeneous consumer choices, manufacturers' pricing strategies, bilateral bargaining between makers suppliers....