Essays on industry dynamics and misallocation
This thesis explores the linkages among resource allocation, industry dynamics, and asset price bubbles in China. In the first chapter, I break the source of misallocation into four groups: uncertainty, ownership difference, regional heterogeneity and traditional distortions. Next, I quantify their...
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| Format: | doctoral thesis |
| Status: | Published version |
| Publication Date: | 2020 |
| Country: | España |
| Institution: | CBUC, CESCA |
| Repository: | TDR. Tesis Doctorales en Red |
| OAI Identifier: | oai:www.tdx.cat:10803/670220 |
| Online Access: | http://hdl.handle.net/10803/670220 |
| Access Level: | Open access |
| Keyword: | Misallocation China Industry 33 |
| Summary: | This thesis explores the linkages among resource allocation, industry dynamics, and asset price bubbles in China. In the first chapter, I break the source of misallocation into four groups: uncertainty, ownership difference, regional heterogeneity and traditional distortions. Next, I quantify their contributions to efficiency loss using counter factual analysis. Then I split traditional distortions into capital market frictions and labor market frictions. Although the frictions in the capital market are more severe, labor market frictions play a more important role in the economy due to their high input weight. The second chapter examines the effects of asset price bubbles on resource reallocation. I construct bubble indicators and describe industry dynamics from a multi-dimensional perspective at the sector level. The main results suggest that asset bubbles lower allocative efficiency, crowd out aggregate investment, increase firms’ exit rate and substantially impact the micro structure of the market. The whole work provides new evidence and solid support for future studies on related topics. |
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