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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Detalles Bibliográficos
Autor: Liu, Shangyu
Tipo de recurso: tesis doctoral
Estado:Versión publicada
Fecha de publicación:2020
País:España
Institución:CBUC, CESCA
Repositorio:TDR. Tesis Doctorales en Red
OAI Identifier:oai:www.tdx.cat:10803/670220
Acceso en línea:http://hdl.handle.net/10803/670220
Access Level:acceso abierto
Palabra clave:Misallocation
China
Industry
33
Descripción
Sumario: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.