Agriculture is a main source of environmental degradation and biodiversity decline. We investigate the causal effects of culture on pro-environmental behaviors of the agricultural population (farmers), and how policy instruments interact with culture to influence individual behavior. We exploit...

This study investigates the impact of state subsidies on corporate environmental spending of Chinese listed firms between 2011 and 2018, using a hand-collected data from corporate annual and environmental responsibility reports. We find a positive relationship between state subsidies and...

We propose a tractable equilibrium model to examine how margin requirements affectasset prices, market volatility, and market participants' welfare. Weshow that margin requirements can have opposite effects on market volatility whenthey constrain different investors and thus can help explain why...

Market makers in some financial markets often make offsetting trades and have significant market power. We develop a market making model that captures these market features as well as other important characteristics such as information asymmetry and inventory risk. In contrast to the existing...

The fractional reserve theory of money creation only considers the reserve requirement but ignores prudential regulations. We study the impacts of three prudential regulations under the Basel III framework on the commercial bank's ability to create money. Using a balance sheet approach, we...

This study investigates the impact of market-based environmental regulations on firm innovation by examining one of the first large-scale market-based regulatory attempts in a developing country, China's sulfur dioxide emissions trading program. Based on the difference-in-differences method,...

We examine how mandatory disclosure of corporate social responsibility (CSR) impacts firm performance and social externalities. Our analysis exploits China's 2008 mandate requiring firms to disclose CSR activities, using a difference-in-differences design. Although the mandate does not require...

Banking sector openness may directly increase growth by improving the quality of financial services and increasing funds available, or indirectly by improving the efficiency of financial intermediaries, both of which may reduce the cost of financing, in turn, increase capital accumulation and...

The retirement systems in many developed countries have been increasingly moving from Defined Benefit (DB) towards the Defined Contribution (DC) system. In such systems, financial and longevity risks are shifted from the pension provider to the retiree. This paper uses a probabilistic approach...

Abstract We examine Chinese cities' COVID-19 reopening plans as a window into governments' economic and social priorities. Early reopenings are predicted by citizen discontent, as captured by Baidu searches for terms such as “unemployment” and “protest” in the prior week. Taking a longer...