We study the implications of financial-market imperfections on labor and capital misallocation in China. Financial friction stems from private sectors' credit constraints that limit the efficient use of capital relative to state firms. Our model can jointly explain labor flows out of and capital...

We study the implications of financial-market imperfections on labor and capital misallocation in China. Financial friction stems from private sectors' credit constraints that limit the efficient use of capital relative to state firms. Our model can jointly explain labor flows out of and capital...

This paper demonstrates a novel mechanism through which emissions cap-and-trade mitigates production-side distortion vis-à-vis an emissions cap policy under a heterogeneousfirm framework with imperfect competition. When clean and dirty inputs are gross substitutes, we find that a pro rata...

The impact of socio-economic status on health has been widely recognized, but the independent impact of social status alone on health remains inconclusive. We approach this challenge by exploiting a natural experiment in which subjects undergo a shift in their social status without considerable...

The impact of socio-economic status on health has been widely recognized, but the independent impact of social status alone on health remains inconclusive. We approach this challenge by exploiting a natural experiment in which subjects undergo a shift in their social status without considerable...

We provide quantitative evidence that the primary effects of economic sanctions on trade and welfare are accompanied by strong extraterritorial effects — estimates of the former effects may be significantly biased if the latter effects are not taken into account. Furthermore, while the...

Direct measures of the economic impact of sanctions are contaminated by the endogeneity that arises when other events in target countries (e.g., civil or interstate conflicts, political independence, etc.) instigate the imposition of sanctions. To address this issue, we propose a novel...