An Auspicious Start! FISF Wins Critical Scientific Research Awards and Receives Good News of Paper Publication
发布时间：2021-02-23
Good news comes in the spring of the
year of the ox! On February 18th 2021, with the publicity end of
“Pushan Award for Excellent Papers on International Economics (2020)” (“Pushan
Award” for short), Professor Shang-Jin Wei and Professor Chang Ma respectively
won “2020 Pushan Award for Academic Research” and “2020 Pushan Young Scholars
Award”. The two awards not only show the solid scientific research strength of
the professor team at FISF, but also encourage young scholars to devote
themselves to research and innovation in order to provide assistance in
promoting FISF to sail far and smoothly.
Glory of Pushan Award
Hosted by Shanghai Pu Shan New Finance Development Foundation
(Pu Shan Foundation for short) and initiated by China Society of World
Economics, “Pushan Award” aims to commemorate Dr. Pu Shan, an esteemed
predecessor in China’s world economic circle and to carry forward his noble qualities of
wholehearted devotion.. “Pu Shan Award” is included by the Ministry of
Education in the annual report item of science and technology statistics. It
ranks significantly in other academic achievement awards like “Award of Sun
Yefang Economic Science”. It is awarded every other year to excellent original
academic research and policy research in world economy, open macroeconomics, international finance,
international trades, economic development and growth as well as China’s
foreign economic relations.
Shanghai Pu Shan New
Finance Development Foundation
The 2020 the “Pu Shan Award”
collection started in March, and collected a total of 108 candidate works based
on self-promotions and expert recommendations, among which 10 passed two rounds
of selection and made it into the final. The academic committee of the“Pu Shan
Award” reviewed the 10 papers during the final round and selected 4
award-winning works in 3 categories. The two papers of Professor Shang-Jin Wei
and Professor Chang Ma respectively won the“2020 Pu Shan Award for Academic
Research” and the“2020 Pu Shan Young Scholars Academic Paper Award”.
Shang-Jin Wei
Academic Visiting Professor at FISF
Professor of Finance and Economics at Columbia University
Professor Shang-Jin Wei’s paper “Made in China” to “Innovated in China”:
Necessity, Prospect, and Challenges, won the “2020 Pu Shan Award for Academic Research”.
Author: Shang-Jin Wei,
Zhuan Xie, and Xiaobo Zhang
Title: From “Made in
China” to “Innovated in China”: Necessity, Prospect, and Challenges; Journal of Economic Perspectives—Volume
31, Number 1
Abstract: After more than three decades of high growth that was based on an
exploration of its low-wage advantage and a relatively favorable demographic
pattern in combination with market-oriented reforms and openness to the world
economy, China is at a crossroad with a much higher wage and a shrinking work
force. Future growth by necessity would have to depend more on its ability to
generate productivity increase, and domestic innovation will be an important
part of it. In this paper, we assess the likelihood that China can make the
necessary transition. Using data on expenditure on research and development,
and patent applications, receipts, and citations, we show that the Chinese
economy has become increasingly innovative. In terms of drivers of innovation
growth, we find that embracing expanded market opportunities in the world
economy and responding to rising labor costs are two leading contributing
factors. On the other hand, we find evidence of resource misallocation in the
innovation area: while state-owned firms receive more subsidies, private firms
exhibit more innovation results. Innovation can presumably progress even faster
if resource misallocation can be tackled.
Chang Ma
Associate Professor of Finance (untenured) at FISF
The paper (Financial
Stability, Growth and Macroprudential Policy) by Professor Chang Ma was
awarded the prize of " 2020 Pu Shan Young Scholars Academic Paper
Award". Pu Shan Award is awarded every other year. Only one person
(Professor Chang Ma)
won the prize of "2020 Pu Shan Young Scholars Academic Paper
Award".
Author: Chang Ma
Title: Financial Stability, Growth and Macroprudential Policy, Journal of International Economics,
2020, Volume 122, 103259.
Abstract: This paper studies the effect of optimal
macroprudential policy in a small open economy model where growth is
endogenous. By introducing endogenous growth, this model is able to capture the
persistent effect of financial crises on output, which is different from
previous literature but consistent with the data. Furthermore, there is a new
policy trade-off between cyclical and trend consumption growth. In a calibrated
version of the baseline model, I find that the impact of the optimal
macroprudential policy on growth and welfare is quantitatively small even if it
significantly increases financial stability. I consider two extensions of the
model in which the optimal macroprudential policy has a larger impact on growth
and welfare: one in which macroprudential policy is jointly used with a growth
subsidy that helps reduce the cost of financial crises; and another extension
with a direct growth externality.
Good News of Paper Publication
At the new year start of 2021, the FISF academic research team
welcomed a round of good news apart from the winning of “Pu Shan Awards”. From January
1st 2021 to February 22nd, Professor Xiaxin Wang, Wenbin
Wu, Yifan Zhou, Shang-Jin Wei and Huasheng Gao succeeded in publishing their 5
papers in world-class journals, including Journal of Public Economics, Review of Economic Dynamics,
Journal of Financial Economics, Journal of International Economics, Journal of
Empirical Finance (listed in chronological order of publication).
Xiaxin Wang
Assistant Professor of Economics at FISF
Author: Daixin He, Langchuan Peng, and Xiaxin Wang
Title: Understanding the Elasticity of Taxable Income: A Tale of
Two Approaches, Journal of Public
Economics, 2021, Volume 197, 104375.
Abstract: This paper conducts the first formal comparison of two
main approaches (tax reform versus bunching approach) to estimate the
elasticity of taxable income (ETI), a central parameter in the public finance
literature since Feldstein (1999). Using a novel panel of administrative tax
data from China and exploiting China's progressive monthly wage income tax
schedule and a tax reform in 2011, we document two key differences in the ETI
estimates obtained from these two approaches. First, the tax reform ETI
estimates increase concavely over time, while the bunching ETI estimates are
much more stable. Second, the tax reform ETI estimates (around 4 in the
long-run) are much larger than the bunching ETI (around 0.5), and the
difference is statistically significant. To account for these facts, we develop
a simple model where individuals in each period have some probability to
permanently change hours of work without paying other costs but can temporarily
adjust hours by paying additional costs. With stable wage rates, the two
estimators should converge to the same underlying value. But with normal wage
growth, the tax reform estimates converge to the true underlying parameter,
whereas the bunching estimates can be far below the true figure.
Wenbin Wu
Associate Professor of
Finance (untenured) at FISF
Author: Wenbin Wu
Title: Sales of durable goods and the real effects of monetary
policy, Review of Economic Dynamics,
2021, forthcoming.
Abstract: Despite their prevalence in the microdata, sales
(i.e., temporary price cuts) are often ignored by macroeconomists. If sales are
taken into account, price rigidity is small in the data. Using the microdata
underlying the Consumer Price Index (CPI), I first demonstrate that sales of
durable goods have a substantial impact on the aggregate price index, and that
the price index decreases gradually after these sales. To quantify the changes
in the real effects of monetary policy due to sales, I propose a two-sector
menu-cost model, in which sales are allowed. The model, which is able to match
salient features of the microdata, predicts that the real effects of monetary
policy will be significantly overestimated if sales of durable goods are not
taken into consideration. Compared to my benchmark model, the model without
sales and the Calvo model calibrated to the frequency of regular price changes
both generate much greater real effects of monetary policy.
Yifan Zhou
Assistant Professor of Finance at FISF
Author: Travers Barclay Child, Nadia Massoud, Mario Schabus, and
Yifan Zhou
Title: Surprise election for Trump connections, Journal of Financial Economics, 2021,
Volume 140, Issue 2, Pages 676-697.
Abstract: We exploit Donald Trump’s nonpolitical background and surprise election
victory to identify the value of sudden presidential ties among S&P 500
firms. In our setting firms did not choose to become politically connected, so
we identify treatment effects comparatively free of selection bias prevalent in
this literature. Firms with presidential ties enjoyed greater abnormal returns
around the 2016 election. Since Trump’s inauguration, connected firms had
better performance, received more government contracts, and were less subject
to unfavorable regulatory actions. We rule out a number of confounding factors,
including industry designation, sensitivity to Republican platforms, campaign
finance, and lobbying expenditures.
Shang-Jin Wei
Academic Visiting Professor at FISF
Professor of Finance and Economics at Columbia University
Author: Jiandong Ju, Kang Shi, and Shang-Jin Wei
Title: Trade Reforms and Current Account Imbalances, Journal of International Economics,
2021, Volume 131, 103451.
Abstract: This paper studies the effects of trade liberalization
on capital flows in a dynamic HeckscherOhlin model and makes four
contributions. First, we identify an interest rate over-determination problem
in such a model, and solve it with an endogenous discount factor. Second, we
show that a trade liberalization in a developing country generally leads to a
greater current account surplus, which is the exact opposite of a common but
partial equilibrium intuition. Third, factor market reforms reinforce the
effect of the trade liberalization on capital outflows. Finally, our
calibrations suggest that China's accession to the WTO is likely an important
factor driving the rise of current account surplus during 2001–2010.
Huasheng Gao
Professor of Finance
Deputy Dean of
Faculty and Research at FISF
Author: Tao Chen, Huasheng Gao, and Yuxi Wang
Title: Tariff Uncertainty and Firm Innovation: Evidence from the
U.S.-China Permanent Normal Trade Relation, Journal
of Empirical Finance, 2021, Volume 62, Pages 12-27.
Abstract: We examine the effect of the tariff uncertainty associated
with Chinese imports on U.S. firm innovation. Our test exploits the U.S.
conferral of Permanent Normal Trade Relations (PNTR) on China—a policy that
reduces the uncertainty of future tariff increases for Chinese goods. We find a
significant increase in the number of patents and patent citations for U.S.
firms affected by PNTR relative to other firms. This result is stronger for
firms with more irreversible investments and for firms that experience a
greater increase in Chinese goods following PNTR. Overall, our evidence is
consistent with the view that lowering the tariff uncertainty of Chinese
imports boosts the attractiveness for U.S. firms to make long-term irreversible
investment (such as technological innovation) and thus induces U.S. firms to
innovate more.
Wishing for a new outlook and setting
out on a new journey in the new year. FISF has always stuck to the “Three
World-class” goal of “world-class academic research and discipline
construction, world-class teaching projects and high-end talent cultivation and
world-class thinktank research and social influence”. It calls for a team of
top teachers worldwide and strives to build the school into a truly
internationalized world-class financial school that occupies the commanding
point in global financial discipline with global influence and discursive power
and can practically answer and solve major real-life problems in developing the
financial industry, contributing to the innovation promotion and transformation
upgrade of national and local governments as well as enterprises.