Chih, Yao-Yu; Demir, Firat; Hu, Chenghao; Liu, Junyi; … - 2022
We develop a stylized model to explore the relationship between local corruption and over-investment in residential … housing sector. The model has four predictions: i) higher corruption increases investment in the residential housing sector …, ii) higher corruption decreases investment in the non-housing sector; iii) there is a threshold effect of corruption on …