Trust is vital for market development, but how can trust be enhanced in a marketplace? A common view is that more trusting may help to build trust, especially in less developed economies. In this paper, we argue that more trusting may lead to less trust. We set up a rational expectation model in...

We investigate the deterrence effects of a firm-targeted sanction and a politician-targeted sanction deployed by Mainland China against Taiwan to deter support for “Taiwan Independence”. In the short-run, we find that the signal sent by the targeted sanctions generated deterrence to firms...

School shutdown due to the global pandemic of coronavirus disease 2019 (COVID-19) can lead to an increase in education inequality through disproportionately affecting disadvantaged children. We use data from a unique survey of 7,330 junior high school students and their parents from Shaanxi to...

Through analyzing panel data of city leaders from China, this study shows that economic performance is negatively correlated with probability of promotion if the city leader is not politically connected with provincial leader. The correlation becomes positive if the city leader establishes...

Despite the increasing adoption of environmental regulations in emerging economies, their socioeconomic impact has not been fully explored. This study evaluates the effects of a sulfur dioxide (SO2) control policy in China on industrial emission and production activities. The “Two Control...