In this study, we exploit a policy shock that differentially increased capital gains taxes for housing units with holding period less than 5 years, and document tax avoidance and tax evasion in the residential resale market in China. We show suggestive evidence that after the capital gains tax...

In this study, we provide a comprehensive overview of housing affordability in China from both the macro and micro perspectives. We extend the scope of housing affordability analysis to all Chinese cities based on a unique panel dataset in 275 Chinese prefecture cities from 2014 to 2018. We also...

It is widely believed that the rotation and promotion system of local political chiefs plays an important role in China's economic miracle. In this paper, however, we focus on the potential cost of the inherent frequent turnovers of local chiefs. Based on a new manually-collected dataset on...

While a timely, accurate house price index with broad coverage is of significant importance in housing market research and analysis, the lack of reliable raw data sources remains a major constraint in the house price index construction in nascent housing markets such as China. In this study, we...

Using a panel of Credit Default Swap (CDS) spreads and supply chain links, we observe that both favorable and unfavorable credit shocks propagate through supply chains in the CDS market. Particularly, the three-day cumulative abnormal CDS spread change (CASC) is 63 basis points for firms whose...

Two innovative financing schemes have emerged in recent years to enable suppliers to obtain financing for production. The first, purchase order financing (POF), allows financial institutions to offer loans to suppliers by considering the value of purchase orders issued by reputable buyers. Under...

Most existing house price index construction methods are developed manly based on transaction data from the secondary housing markets, and are not necessarily suitable for the nascent housing markets where a predominant portion of housing transactions are new units. Using the booming market in...

The Great Recession was characterized by two related phenomena: (i) a jobless recovery and (ii) a permanent drop in aggregate output. Data show that the United States, Europe, and even countries with lesser ties to the international financial system have suffered large permanent losses in...

China's record-breaking economic growth is evoking increasing concern about unaddressed environmental problems. We show that, while city government spending on environmental infrastructure has a demonstrably positive environmental impact, city spending is nonetheless strongly tilted towards...