Motivated by growing concerns about the risks and instability of China's financial system,
this article reviews several commonly perceived financial risks and discusses their roots in …

The long-term extensive economic development has caused China's resource and
environmental problems, especially the resource misallocation. The way China prioritises its …

In 2009 and 2010, China undertook a 4 trillion Yuan fiscal stimulus, roughly equivalent to 12
percent of annual GDP. The" fiscal" stimulus was largely financed by off-balance sheet …

ABSTRACT In China, between 2006 and 2013, local public debt crowded out the investment
of private firms by tightening their funding constraints while leaving state‐owned firms' …

Starting in the late 1990s, China undertook a dramatic transformation of the large number of
firms under state control. Small state-owned firms were privatized or closed. Large state …

We develop a methodology to disentangle sources of capital “mis-allocation,” ie, dispersion
in value-added/capital. It measures the contributions of technological/informational frictions …

Policy distortions and financial frictions are two leading candidates in generating capital
misallocation. This paper designs an identification strategy to separate their effects on …

The large regional variation in minimum wage levels during the period 2002–8 in China
implies that Chinese manufacturing firms experienced competitive shocks as a function of …

Using proprietary individual level loan data, this paper explores the economic
consequences of the 2009 bank entry deregulation in China. Such deregulation leads to …

This paper formalizes a classic idea that in second-best environments trade can induce
welfare losses: incremental income losses from distortions can outweigh trade gains. In a …