We explore the dynamic interaction between housing prices and air quality in a growing economy with changing preferences using panel vector auto-regression. Using Chinese data, we document robust evidence that better air quality is rewarded by the market with higher housing prices and that...

This paper explores the role of political connection on the overinvestment of Chinese energy firms. We argue that political connection can act as a “helping hand” that enables energy firms to obtain more government support to invest and a “grabbing hand” that forces politically connected...