Working Papers
"Financial Regulations and Performance in a Two-Sector Financial Market " [Download here]
This study investigates the impact of financial regulations in a two-sector financial market, encompassing traditional banks and fintech. I extend an entrepreneurial model with heterogeneous default rates, focusing on Non-Performing Loan (NPL) ratio limits and information asymmetry. Entrepreneurs' loan rates are shaped by their productivity and available capital, with fintech often charging higher interest rates due to capital costs. Stringent NPL limits drive entrepreneurs towards fintech, resulting in elevated loan rates and default risks. Increased information asymmetry distorts creditworthiness assessments. Using empirical data from China, I analyze the effects of NPL limits and information asymmetry on systematic risk, entrepreneurship, output, and wealth distribution. Findings of this study challenge conventional assumptions, indicating that strict NPL limits have a limited impact on systematic risk, whereas reducing information asymmetry can mitigate systematic risk, albeit affecting other economic indicators. This research sheds light on the delicate balance needed in financial regulations within a two-sector market.
"Impact of Social Health Insurance Reform on Healthcare Access and Health Outcomes in China" [draft coming soon]
This paper examines the effects of social health insurance reform on healthcare access and health outcomes across different socioeconomic groups in China. Specifically, it studies the impact of the integration of rural and urban social health insurance schemes - a critical measure in China's health insurance reform. This integration aligns the reimbursement rate, drug menu, and premiums across rural and urban areas. Using individual-level survey data from the China Health and Retirement Longitudinal Study (CHARLS) and a PSM-DID design, the paper estimates the effects of this integration on the quality of healthcare and health outcomes for different socioeconomic groups in rural and urban areas. The findings reveal that while the integration of health insurance schemes positively impacts high-quality healthcare access and health outcomes for high socioeconomic groups in rural areas, it adversely affects low socioeconomic groups in urban areas.
"Analyzing pharmaceutical spending using International Comparisons Program Data", with Nick Carroll, IMF Working Paper [draft coming soon]
This paper explores the factors associated with pharmaceutical spending at the country level using the International Comparison Program (ICP). This dataset offers extensive health-related price and volume data for low-, middle- and high-income countries. Our analysis reveals significant correlations between pharmaceutical expenditure and various factors. A key finding is that both government and household pharmaceutical consumption is sensitive to price (i.e.,. as pharmaceutical prices rise, all else equal, demand for pharmaceuticals declines more than proportionately). The paper also shows that large savings could be realized if high-price countries could reduce their prices to benchmark pharmaceutical price levels.
"Credit Allocation: The Impact of Financial Frictions on Entrepreneurship"
"Effects of OPT STEM Extension on Academic Major Selection and Long-Term Income", with Adam Bestenbostel