"Pudong is a district located at east of the Huangpu River and is opposite to Puxi, west of the Huangpu River and the historic city center of Shanghai. Since the establishment of Pudong New Area in early 1990s, the backward Pudong has become a thriving financial hub of modern China and home to...

We study how place-based land allocation policy can create spatial misallocation. Combining microdata and a spatial equilibrium model, we investigate a major policy change of distributing more land to underdeveloped inland regions in China. First, by a method combining RD and DID, we show causal...