Research

Job Market Paper

Counter-cycle policy, with a shorter implementation period than universal/acyclical policy, might appear to cause a smaller impact to the market also. However, once competition over time is taken into consideration, the impact is not necessarily smaller. Utilizing a unique transaction-level dataset, I study the impact of state-based/counter-cycle policy by structurally estimating the dynamic competition of the Hong Kong real estate primary market with the extended Oblivious Equilibrium. It is shown that the policy intended goal is only achieved when the dynamic competition is ignored. Furthermore, incorporating the anticipation of competition in the periods subject to the policy, the counterfactual analysis shows that the counter-cycle policy impact is at a similar scale as the universal/acyclical policy impact. This calls for caution against a common perception of smaller distortion from a counter-cycle measure.

"Productive Competition under Rationing: Evidence from Food Delivery in China" (joint with Wenzheng Mao)