Research
Working Papers
➤ Consumption Stimulus with Digital Coupons, with Ying Chen, Jiaming Mao, and Jingyi Zhou.
Abstract: We study consumption stimulus using digital coupons, which provide time-limited subsidies contingent on minimum spending. Analyzing a large-scale program in China, we find: (1) the program generates large and heterogeneous short-term effects,
driven by demand- and supply-side factors; (2) the largest spending increases occur among consumers for whom coupons should be equivalent to cash,
suggesting behavioral mechanisms; and (3) high-response consumers disproportionately patronize large businesses, producing regressive benefit allocation. Targeting the most responsive consumers can double total stimulus effects, while a hybrid design combining targeting with direct small business support improves both efficiency and equity.
Work-in-Progress
➤ Balancing the Power of Coal-Fired Power Plants: Growth versus Sustainability, with Ying Chen and Shihe Fu.
Abstract: In emerging market countries, power shortage is a major obstacle to economic progress.
Coal-fired power plants are the primary power source due to their affordability and stable power supply in these regions.
However, these plants also contribute to severe air pollution and pose a threat to public health.
This paper utilizes a Rosen-Roback style spatial framework and an instrumental variable approach to examine the impact and underlying mechanisms of coal-fired power plants on local labor markets.
Our findings indicate that these plants enhance local firm productivity, attracting an inflow of population.
However, they also worsen air pollution, leading to an outflow of population.
Notably, the inflow of population on average exceeds the outflow at the granular county level.
This study highlights the trade-offs faced by emerging economies as they strive to balance the need for a stable electricity supply with concerns about environmental hazards.