Shanjun Li’s research while affiliated with Cornell University and other places

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Publications (54)


Entry Deregulation, Market Turnover, and Efficiency: China's Business Registration Reform
  • Article

January 2025

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3 Reads

Review of Economics and Statistics

Panle Jia Barwick

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Luming Chen

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Shanjun Li

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Xiaobo Zhang

Although entry regulations are ubiquitous across countries, comprehensive evaluations on how such regulations affect firm dynamics and productivity are lacking. We examine a 2012-2014 pilot program in Guangdong (which later became a national policy) that was designed to reduce firm registration costs and encourage entrepreneurial activities. Using administrative data on firms' business registrations and annual reports, our analysis shows that the reform increased firm entry by 25% and firm exit by 8.7% in the manufacturing sector. The productivity of post-reform entrants was 1.1% higher than the productivity of pre-reform entrants, likely due to relaxed financial constraints and more intense competition.




Efficiency and Equity Impacts of Urban Transportation Policies with Equilibrium Sorting

October 2024

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28 Reads

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4 Citations

American Economic Review

Panle Jia Barwick

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Shanjun Li

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Andrew Waxman

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[...]

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Tianli Xia

We estimate an equilibrium sorting model of housing location and commuting mode choice with endogenous traffic congestion to evaluate urban transportation policies. Leveraging fine-scale data from travel diaries and housing transactions identifying residents' home and work locations, we recover rich preference heterogeneity over both travel mode and residential location decisions. While different policies produce the same congestion reduction, their impacts on social welfare differ drastically. In addition, sorting undermines the congestion reduction under driving restrictions and subway expansion but strengthens it under congestion pricing. The combination of congestion pricing and subway expansion delivers the greatest congestion relief and efficiency gains. (JEL H76, O18, P25, R23, R31, R41, R48)


From Fog to Smog: The Value of Pollution Information

May 2024

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102 Reads

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49 Citations

American Economic Review

In 2013, China launched a landmark program to monitor air quality and disclose real-time data, significantly increasing the public’s access to and awareness of pollution information. The program triggered cascading behavioral changes such as stronger avoidance of outdoor pollution exposure and increased spending on protective products. These behavioral responses mitigated the mortality impact of air pollution. Conservative estimates indicate that the program’s health benefits outweigh the costs by an order of magnitude. The findings highlight the benefits of improving public access to pollution information in developing countries which often experience severe air pollution but lack pollution data collection and dissemination. (JEL D83, D91, I12, O13, P28, Q51, Q53)


The Healthcare Cost of Air Pollution: Evidence from the World's Largest Payment Network

March 2024

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12 Reads

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21 Citations

Review of Economics and Statistics

This paper exploits the universe of credit- and debit-card transactions in China during 2013-2015 and provides the first nationwide analysis of the healthcare cost of PM2.5 for a developing country. We leverage spatial spillovers of PM2.5 from long-range transport to generate exogenous variation in local pollution and employ a flexible distributed lag model to capture semiparametrically the dynamic response of pollution exposure. We find significant impacts of PM2.5 on healthcare spending in both the short and medium terms. A 10 μg/m3 decrease in PM2.5 would reduce annual healthcare spending by over $9.2 billion, about 1.5% of China's annual healthcare expenditure.






Citations (41)


... Strategic techno-autonomy vs. strategic techno-competition Based on the game theory, both approaches of strategic techno-autonomy and competition use analyses of strategic interactions and the decisionmaking of rational actors in competitive environments (Barwick et al., 2024a;Bown and Wang, 2024;). Strategic techno-autonomy refers to a country's ability to independently make decisions and pursue policies without being overly dependent on external actors (Atkinson, 2024). ...

Reference:

Geoeconomics of US-China tech rivalry and industrial policy
Industrial Policies and Innovation: Evidence from the Global Automobile Industry
  • Citing Article
  • January 2024

SSRN Electronic Journal

... Future cities are expected to adopt self-driving technology as a primary mode of transportation, integrating it into urban planning to establish transportation networks that are more sustainable and responsive to the needs of their residents [3,4]. However, different allocations of transportation demand significantly affect the efficiency of urban transportation operations, and varying levels of accessibility can have diverse impacts on citizens' travel behaviors [5,6]. ...

Efficiency and Equity Impacts of Urban Transportation Policies with Equilibrium Sorting
  • Citing Article
  • October 2024

American Economic Review

... Baidu SVI reflects the weighted sum of specific keywords in the Baidu search engine of a location during a specific time. Recent studies have used Baidu SVI to capture local public attention to environmental issues (Barwick et al. 2020;Xue, Zhang, and Zhao 2021). Our specification uses daily data because it provides the highest temporal precision both in Baidu SVI and in our right-hand side variables. ...

From Fog to Smog: The Value of Pollution Information
  • Citing Article
  • May 2024

American Economic Review

... Sheldon and Dua (2024) provided a global perspective, revealing subsidies' costs across countries and demonstrating improved medium-term cost-effectiveness. Barwick et al. (2024) showed that attribute-based subsidies in China led to higher product quality and reduced market distortions compared to uniform subsidies. While subsidies are effective in stimulating NEV adoption, they also pose financial challenges for local governments. ...

Attribute-Based Subsidies and Market Power: An Application to Electric Vehicles
  • Citing Article
  • January 2024

SSRN Electronic Journal

... However, China is still in the ranks of developing countries; the population base is large, the per capita income level is still low, and the increase in the income level of individual residents in the short term can still increase their well-being (Ye & Zhang, 2020). Additionally, under the same OAP conditions, households with higher incomes are more likely to invest in costlier and more efficient air pollution protection gear (Sun et al., 2017), such as masks and air filters, and reduce the effects of air pollution on household members by spending more on medical care (Barwick et al., 2018) and receiving health insurance. Thus, we believe that the level of household income can increase the well-being of the residents and simultaneously weaken the negative effect of air pollution on well-being (Sun et al., 2022). ...

The Healthcare Cost of Air Pollution: Evidence from the World's Largest Payment Network
  • Citing Article
  • March 2024

Review of Economics and Statistics

... Using their collective power, consumers can exert significant economic and reputational pressure on corporations to adopt more ethical and socially responsible practices. This can lead to enhanced labor standards, environmentally sustainable practices, and increased transparency, often resulting in legislation that addresses the concerns highlighted by activists (Weiss et al. 2023). ...

Commercial Casualties: Political Boycotts and International Disputes
  • Citing Article
  • Full-text available
  • October 2023

Journal of East Asian Studies

... Gig workers in China face complex social challenges, including the urban-rural divide, migrant labor from low-source regions, and capitalist exploitation [27,152], which are exacerbated by digital platforms and the rapid advancement of automation [151]. Many participants previously worked in industries like sales, auto repair, construction, and manufacturing but shifted to gig work due to economic downturns, rising unemployment, and a slowdown in manufacturing and trade [85,87,118]. This economic precarity along with platform control has reduced their employment options [92], making them vulnerable to exploitation in a gig economy where automation poses a growing threat. ...

The COVID-19 pandemic and unemployment: Evidence from mobile phone data from China
  • Citing Article
  • March 2023

Journal of Urban Economics

... These factors can lead to increased risks of infrastructure damage, disruptions in operations, and compromised safety [11]. Therefore, it is crucial to incorporate climate change adaptation strategies into the planning and design of railway infrastructure to enhance its resilience and sustainability [12]. Integrating climate change adaptation strategies into railway infrastructure planning involves considering various aspects [13]. ...

Improved Transportation Networks Facilitate Adaptation to Pollution and Temperature Extremes
  • Citing Article
  • January 2022

SSRN Electronic Journal

... Both temperature and air quality are important factors in determining human interactions and knowledge exchanges. Barwick et al. show that HSR facilitates the use of intercity travel as an effective adaptation strategy to pollution and temperature extremes in China [42]. μ i indicates county-level fixed effects, and δ pt indicates province-by-year fixed effects. ...

Improved Transportation Networks Facilitate Adaptation to Pollution and Temperature Extremes
  • Citing Article
  • January 2022

SSRN Electronic Journal

... Our study relates to several strands of literature. Researchers have long been interested in modelling the scrappage and survival rates of petrol and diesel cars [22][23][24] as well as the impact of policies aimed at encouraging vehicle scrappage [25][26][27][28] . The rise of EVs has also led to a https://doi.org/10.1038/s41560-024-01698-1 of the market. ...

The Cost of Greening Stimulus: A Dynamic Analysis of Vehicle Scrappage Programs
  • Citing Article
  • June 2022

International Economic Review