Pub Date : 2025-11-17DOI: 10.1016/j.chieco.2025.102601
Xiao Deng , Shi-Ting He , Xinrui Lin , Junjie Tang
Successful innovations not only hinge on the firm's internal characteristics, but also closely relate to its involvement in supply networks. Unlike most previous studies that focus on the ego network surrounding a focal firm, our study expands the view to the entire nationwide supply network and investigates how a firm's network centrality facilitates its innovations. Leveraging a novel dataset on inter-firm relationships, we trace the evolution of the supply network among Chinese firms from 2007 to 2021. Our analysis demonstrates that firms with higher network centrality tend to devote more efforts to innovation and acquire more innovation outputs. Centrally positioned firms enjoy enhanced access to external financing and valuable information sharing. These advantages have contributed to the recent increase in internal innovation efforts by Chinese firms to mitigate the impact of U.S. economic sanctions.
{"title":"Supply network and firm innovation: Evidence from China","authors":"Xiao Deng , Shi-Ting He , Xinrui Lin , Junjie Tang","doi":"10.1016/j.chieco.2025.102601","DOIUrl":"10.1016/j.chieco.2025.102601","url":null,"abstract":"<div><div>Successful innovations not only hinge on the firm's internal characteristics, but also closely relate to its involvement in supply networks. Unlike most previous studies that focus on the ego network surrounding a focal firm, our study expands the view to the entire nationwide supply network and investigates how a firm's network centrality facilitates its innovations. Leveraging a novel dataset on inter-firm relationships, we trace the evolution of the supply network among Chinese firms from 2007 to 2021. Our analysis demonstrates that firms with higher network centrality tend to devote more efforts to innovation and acquire more innovation outputs. Centrally positioned firms enjoy enhanced access to external financing and valuable information sharing. These advantages have contributed to the recent increase in internal innovation efforts by Chinese firms to mitigate the impact of U.S. economic sanctions.</div></div>","PeriodicalId":48285,"journal":{"name":"中国经济评论","volume":"95 ","pages":"Article 102601"},"PeriodicalIF":5.5,"publicationDate":"2025-11-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145617082","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-11-16DOI: 10.1016/j.chieco.2025.102599
Qing He , Bailin Liang , Ce Zhang
Analyzing data from 3616 Chinese listed firms, we find a strong positive relationship between policy uncertainty and firms' exchange rate exposure. This result remains robust after controlling for macroeconomic conditions and addressing endogeneity issues. Notably, policy uncertainty's impact is significantly stronger for firms with a higher degree of international involvement and for poorly-governed firms. Interestingly, firms use financial hedging more intensively and reduce their operational hedging in high-uncertainty periods. Our results suggest that policy uncertainty exacerbates the impact of currency movements on firms' financial performance, as firms become increasingly involved in international operations. Consequently, firms should strengthen their corporate governance and make effective use of hedging tools.
{"title":"Does policy uncertainty affect firms' exchange rate exposure? Evidence from China1","authors":"Qing He , Bailin Liang , Ce Zhang","doi":"10.1016/j.chieco.2025.102599","DOIUrl":"10.1016/j.chieco.2025.102599","url":null,"abstract":"<div><div>Analyzing data from 3616 Chinese listed firms, we find a strong positive relationship between policy uncertainty and firms' exchange rate exposure. This result remains robust after controlling for macroeconomic conditions and addressing endogeneity issues. Notably, policy uncertainty's impact is significantly stronger for firms with a higher degree of international involvement and for poorly-governed firms. Interestingly, firms use financial hedging more intensively and reduce their operational hedging in high-uncertainty periods. Our results suggest that policy uncertainty exacerbates the impact of currency movements on firms' financial performance, as firms become increasingly involved in international operations. Consequently, firms should strengthen their corporate governance and make effective use of hedging tools.</div></div>","PeriodicalId":48285,"journal":{"name":"中国经济评论","volume":"95 ","pages":"Article 102599"},"PeriodicalIF":5.5,"publicationDate":"2025-11-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145594642","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-11-16DOI: 10.1016/j.chieco.2025.102598
Shuai Zhao, Linke Hou
In this paper, we investigate the relationship between clans as informal institutions and upward intergenerational transmission of human capital. Using detailed father-child pairs from China, we find individuals residing in areas with stronger clans have higher probability for moving upward the social ladder. A one standard deviation increase in the number of genealogies per 10,000 people (logged) could raise the probability for moving upward the social ladder by 2.26 %. The results are further confirmed by using the distance of each prefecture's centroid to the nearest Zhu Xi academy in the Song Dynasty as an instrumental variable. In addition, informal financing within clans, legacy of prioritizing education and extensive networks of social connections based on kinship networks are three main mechanisms. Finally, daughters who lack financial investment with their schooling and job prospects in small families are more likely to benefit more from resource pooling services within clans, thereby increasing their chances for moving up the social ladder.
{"title":"Climbing the social ladder: Clans and intergenerational mobility in China","authors":"Shuai Zhao, Linke Hou","doi":"10.1016/j.chieco.2025.102598","DOIUrl":"10.1016/j.chieco.2025.102598","url":null,"abstract":"<div><div>In this paper, we investigate the relationship between clans as informal institutions and upward intergenerational transmission of human capital. Using detailed father-child pairs from China, we find individuals residing in areas with stronger clans have higher probability for moving upward the social ladder. A one standard deviation increase in the number of genealogies per 10,000 people (logged) could raise the probability for moving upward the social ladder by 2.26 %. The results are further confirmed by using the distance of each prefecture's centroid to the nearest Zhu Xi academy in the Song Dynasty as an instrumental variable. In addition, informal financing within clans, legacy of prioritizing education and extensive networks of social connections based on kinship networks are three main mechanisms. Finally, daughters who lack financial investment with their schooling and job prospects in small families are more likely to benefit more from resource pooling services within clans, thereby increasing their chances for moving up the social ladder.</div></div>","PeriodicalId":48285,"journal":{"name":"中国经济评论","volume":"94 ","pages":"Article 102598"},"PeriodicalIF":5.5,"publicationDate":"2025-11-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145568496","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-11-14DOI: 10.1016/j.chieco.2025.102582
Yawen Gao , Lun Li , Xin Liang
Understanding the marginal propensity to consume (MPC), its heterogeneity among different population groups, and the influence of policy shocks on MPC is crucial for policymakers. This paper addresses these three questions using two datasets: the China Family Panel Studies (CFPS) and the China Household Finance Survey (CHFS). Extending the Euler equation method of Baker (2018), we estimate the MPC for urban residents in China, finding it ranges between 0.130 and 0.144. A comprehensive heterogeneity analysis shows that individuals with lower wealth, married status, poor health, high education, children, non-migrant status, or homeownership tend to have higher MPCs. Using the 2014 Hukou reform as a policy shock, we estimate its impact on the MPC using CHFS. Results from a difference-in-differences analysis reveal that the reform significantly increased the MPC among urban residents. We show that the influx of migrants following the Hukou reform raised urban housing prices, which increased homeowners' debt levels through wealth effects and reduced their liquid assets, ultimately raising their marginal propensity to consume.
{"title":"Measuring MPC heterogeneity in China: Insights from household registration reform","authors":"Yawen Gao , Lun Li , Xin Liang","doi":"10.1016/j.chieco.2025.102582","DOIUrl":"10.1016/j.chieco.2025.102582","url":null,"abstract":"<div><div>Understanding the marginal propensity to consume (MPC), its heterogeneity among different population groups, and the influence of policy shocks on MPC is crucial for policymakers. This paper addresses these three questions using two datasets: the China Family Panel Studies (CFPS) and the China Household Finance Survey (CHFS). Extending the Euler equation method of Baker (2018), we estimate the MPC for urban residents in China, finding it ranges between 0.130 and 0.144. A comprehensive heterogeneity analysis shows that individuals with lower wealth, married status, poor health, high education, children, non-migrant status, or homeownership tend to have higher MPCs. Using the 2014 Hukou reform as a policy shock, we estimate its impact on the MPC using CHFS. Results from a difference-in-differences analysis reveal that the reform significantly increased the MPC among urban residents. We show that the influx of migrants following the Hukou reform raised urban housing prices, which increased homeowners' debt levels through wealth effects and reduced their liquid assets, ultimately raising their marginal propensity to consume.</div></div>","PeriodicalId":48285,"journal":{"name":"中国经济评论","volume":"94 ","pages":"Article 102582"},"PeriodicalIF":5.5,"publicationDate":"2025-11-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145568498","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-11-11DOI: 10.1016/j.chieco.2025.102594
Yan Zhang , Shuang Ma , Ding Li
This study examines an underexplored question of how housing demolitions influence internal labor migration in China amid slowing population growth and growing concern over workforce mobility. Using nationally representative micro-level survey data from 2013 to 2019 and leveraging housing demolition as an exogenous shock, we examine the relationship among demolition, homeownership, and labor migration. We begin by developing a two-stage discrete choice model to analyze household migration decisions, incorporating multiple dimensions, such as social network dependence, transaction costs, and emotional attachment. Our findings reveal that housing demolition significantly reduces the homeownership rate by 4.6 percentage points and increases the probability of urban registered labor outflow from counties by 7.4 percentage points. Importantly, these effects extend to both intra-provincial and inter-provincial flows, highlighting the role of demolition in reshaping the spatial distribution of labor. Mechanism analysis indicates a dynamic process: in the short term, demolition weakens households' attachment to housing, reducing the housing lock-in effect, while in the long term, compensation creates a wealth effect that alters household assets and influences migration decisions. Heterogeneity analysis further shows that demolition disproportionately constrains younger and lower-income households with fewer assets, underscoring unequal adaptability to forced relocation.
{"title":"Demolition, housing lock-in, and labor migration","authors":"Yan Zhang , Shuang Ma , Ding Li","doi":"10.1016/j.chieco.2025.102594","DOIUrl":"10.1016/j.chieco.2025.102594","url":null,"abstract":"<div><div>This study examines an underexplored question of how housing demolitions influence internal labor migration in China amid slowing population growth and growing concern over workforce mobility. Using nationally representative micro-level survey data from 2013 to 2019 and leveraging housing demolition as an exogenous shock, we examine the relationship among demolition, homeownership, and labor migration. We begin by developing a two-stage discrete choice model to analyze household migration decisions, incorporating multiple dimensions, such as social network dependence, transaction costs, and emotional attachment. Our findings reveal that housing demolition significantly reduces the homeownership rate by 4.6 percentage points and increases the probability of urban registered labor outflow from counties by 7.4 percentage points. Importantly, these effects extend to both intra-provincial and inter-provincial flows, highlighting the role of demolition in reshaping the spatial distribution of labor. Mechanism analysis indicates a dynamic process: in the short term, demolition weakens households' attachment to housing, reducing the housing lock-in effect, while in the long term, compensation creates a wealth effect that alters household assets and influences migration decisions. Heterogeneity analysis further shows that demolition disproportionately constrains younger and lower-income households with fewer assets, underscoring unequal adaptability to forced relocation.</div></div>","PeriodicalId":48285,"journal":{"name":"中国经济评论","volume":"94 ","pages":"Article 102594"},"PeriodicalIF":5.5,"publicationDate":"2025-11-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145519407","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-11-10DOI: 10.1016/j.chieco.2025.102596
Yong Li , Kun Mao , Hongwu Gan , Yang Zhou
This study examines how climate risk shapes household portfolio choice, addressing a gap in the household-finance literature that largely overlooks environmental factors. Prior work has emphasized household characteristics and socioeconomic conditions, but the role of physical climate risk remains underexplored. Using five waves (2011–2019) of the China Household Finance Survey (CHFS) matched to county-level meteorological records, we estimate a household-level panel fixed-effects model and implement an instrumental-variables strategy to identify causal effects. We document that extreme heat conditions significantly curtail participation in equity markets and shrink the fraction of household assets allocated to stocks. Our mechanism analysis indicates that climate risk operates by amplifying background risks—specifically labor-income and health risks—and by tightening household credit constraints. These findings illuminate the micro-level channels through which climate risk affects household financial behavior, highlight regressive effects on disadvantaged households, and underscore the need for climate-resilient financial policy.
{"title":"Climate risk and household stock market participation","authors":"Yong Li , Kun Mao , Hongwu Gan , Yang Zhou","doi":"10.1016/j.chieco.2025.102596","DOIUrl":"10.1016/j.chieco.2025.102596","url":null,"abstract":"<div><div>This study examines how climate risk shapes household portfolio choice, addressing a gap in the household-finance literature that largely overlooks environmental factors. Prior work has emphasized household characteristics and socioeconomic conditions, but the role of physical climate risk remains underexplored. Using five waves (2011–2019) of the China Household Finance Survey (CHFS) matched to county-level meteorological records, we estimate a household-level panel fixed-effects model and implement an instrumental-variables strategy to identify causal effects. We document that extreme heat conditions significantly curtail participation in equity markets and shrink the fraction of household assets allocated to stocks. Our mechanism analysis indicates that climate risk operates by amplifying background risks—specifically labor-income and health risks—and by tightening household credit constraints. These findings illuminate the micro-level channels through which climate risk affects household financial behavior, highlight regressive effects on disadvantaged households, and underscore the need for climate-resilient financial policy.</div></div>","PeriodicalId":48285,"journal":{"name":"中国经济评论","volume":"94 ","pages":"Article 102596"},"PeriodicalIF":5.5,"publicationDate":"2025-11-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145519406","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-11-09DOI: 10.1016/j.chieco.2025.102592
Liangyuan Chen , Jianhao Lin , Xia Wang , Zixiang Zhu
Unlike central banks in developed economies, the People's Bank of China (PBC) does not explicitly use forward guidance but rather provides explanatory information about monetary policy. The PBC has mainly used quarterly written reports and non-periodic oral channels to communication with the market, but there are significant differences in the institutional objectives and textual structures of these two types of communication. This paper investigates the real effects of the PBC's narrative on the macroeconomy. Our results show that the PBC's policy-related information can also guide inflation expectations and have a direct impact on the macroeconomy. The different macroeconomic effects between oral communication and written communication lies in their differences in timeliness, semantic complexity and ambiguity. Meanwhile, such explanatory communication can help the public understand policy stance, resist the negative impact of economic policy uncertainty, and thereby enhance monetary policy effectiveness. Finally, we find that oral communication has an increasingly significant impact on inflation expectations through variance decomposition.
{"title":"The real effect of China's narrative Central Bank Communication","authors":"Liangyuan Chen , Jianhao Lin , Xia Wang , Zixiang Zhu","doi":"10.1016/j.chieco.2025.102592","DOIUrl":"10.1016/j.chieco.2025.102592","url":null,"abstract":"<div><div>Unlike central banks in developed economies, the People's Bank of China (PBC) does not explicitly use forward guidance but rather provides explanatory information about monetary policy. The PBC has mainly used quarterly written reports and non-periodic oral channels to communication with the market, but there are significant differences in the institutional objectives and textual structures of these two types of communication. This paper investigates the real effects of the PBC's narrative on the macroeconomy. Our results show that the PBC's policy-related information can also guide inflation expectations and have a direct impact on the macroeconomy. The different macroeconomic effects between oral communication and written communication lies in their differences in timeliness, semantic complexity and ambiguity. Meanwhile, such explanatory communication can help the public understand policy stance, resist the negative impact of economic policy uncertainty, and thereby enhance monetary policy effectiveness. Finally, we find that oral communication has an increasingly significant impact on inflation expectations through variance decomposition.</div></div>","PeriodicalId":48285,"journal":{"name":"中国经济评论","volume":"94 ","pages":"Article 102592"},"PeriodicalIF":5.5,"publicationDate":"2025-11-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145519578","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-11-04DOI: 10.1016/j.chieco.2025.102583
Linda Glawe
It is by now a well-established fact that good institutions are key to long-run economic performance. However, there is also a growing body of literature that argues that the nature of the interaction between institutional quality and economic growth is complex and might not always be positive and linear. Our paper contributes to this discussion by focusing on China, which has achieved remarkable growth over three decades despite relatively low institutional quality. In particular, we analyze potential nonlinearities in the institutions-growth relationship across Chinese provinces within a dynamic panel data framework using Fan et al.’s NERI marketization index and system GMM estimation techniques. Our findings show that improvements in institutions are harmful to economic growth at very low levels of institutional quality. This attenuating-growth effect persists until a critical threshold is reached; beyond this threshold, the positive effect of institutional quality on growth starts to unfold and continues rising up to a second threshold after which diminishing marginal returns of institutional quality start to manifest. Importantly, our findings are robust when using an alternative measure of economic activity, namely satellite night-time lights. Our findings have important policy implications for China and other developing countries that are seeking to enhance their economic growth prospects through institutional reform.
{"title":"Nonlinearities in the institutions-growth relationship in a dynamic panel data framework: Evidence from China’s provinces","authors":"Linda Glawe","doi":"10.1016/j.chieco.2025.102583","DOIUrl":"10.1016/j.chieco.2025.102583","url":null,"abstract":"<div><div>It is by now a well-established fact that good institutions are key to long-run economic performance. However, there is also a growing body of literature that argues that the nature of the interaction between institutional quality and economic growth is complex and might not always be positive and linear. Our paper contributes to this discussion by focusing on China, which has achieved remarkable growth over three decades despite relatively low institutional quality. In particular, we analyze potential nonlinearities in the institutions-growth relationship across Chinese provinces within a dynamic panel data framework using Fan et al.’s NERI marketization index and system GMM estimation techniques. Our findings show that improvements in institutions are harmful to economic growth at very low levels of institutional quality. This attenuating-growth effect persists until a critical threshold is reached; beyond this threshold, the positive effect of institutional quality on growth starts to unfold and continues rising up to a second threshold after which diminishing marginal returns of institutional quality start to manifest. Importantly, our findings are robust when using an alternative measure of economic activity, namely satellite night-time lights. Our findings have important policy implications for China and other developing countries that are seeking to enhance their economic growth prospects through institutional reform.</div></div>","PeriodicalId":48285,"journal":{"name":"中国经济评论","volume":"94 ","pages":"Article 102583"},"PeriodicalIF":5.5,"publicationDate":"2025-11-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145478854","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-11-03DOI: 10.1016/j.chieco.2025.102580
Jialin Liu , Lin Li , Dong Lu , Meihe E.
Developing countries are taking advantage of FinTech tools to provide more people with convenient access to financial market investment through digital wealth management. Using COVID-19 as an uncertainty shock, we examine whether and how digital wealth management affects the resilience of consumption to shocks based on a unique micro dataset provided by Alipay, a leading Big Tech platform in China. We find that digital wealth management mitigates the response of consumption to uncertainty shocks: residents who participate in digital wealth management, especially in risky asset investments, experience a lower reduction in consumption. The mitigation effect works through two channels: those who allocate a larger proportion of risky assets in their portfolio (portfolio choice channel) and obtain a higher realized return (changes in asset prices channel) exhibit greater consumption resilience to negative shocks. Importantly, digital wealth management helps improve financial inclusion, with a more pronounced mitigation effect among residents with lower-level wealth, living in less developed areas, and those with lower-level conventional finance accessibility. We also find that digital wealth management substitutes for conventional bank credit but serves as a complement to FinTech credit in smoothing consumption during uncertainty shocks.
{"title":"FinTech and consumption resilience to uncertainty shocks: Evidence from digital wealth management in China","authors":"Jialin Liu , Lin Li , Dong Lu , Meihe E.","doi":"10.1016/j.chieco.2025.102580","DOIUrl":"10.1016/j.chieco.2025.102580","url":null,"abstract":"<div><div>Developing countries are taking advantage of FinTech tools to provide more people with convenient access to financial market investment through digital wealth management. Using COVID-19 as an uncertainty shock, we examine whether and how digital wealth management affects the resilience of consumption to shocks based on a unique micro dataset provided by Alipay, a leading Big Tech platform in China. We find that digital wealth management mitigates the response of consumption to uncertainty shocks: residents who participate in digital wealth management, especially in risky asset investments, experience a lower reduction in consumption. The mitigation effect works through two channels: those who allocate a larger proportion of risky assets in their portfolio (portfolio choice channel) and obtain a higher realized return (changes in asset prices channel) exhibit greater consumption resilience to negative shocks. Importantly, digital wealth management helps improve financial inclusion, with a more pronounced mitigation effect among residents with lower-level wealth, living in less developed areas, and those with lower-level conventional finance accessibility. We also find that digital wealth management substitutes for conventional bank credit but serves as a complement to FinTech credit in smoothing consumption during uncertainty shocks.</div></div>","PeriodicalId":48285,"journal":{"name":"中国经济评论","volume":"94 ","pages":"Article 102580"},"PeriodicalIF":5.5,"publicationDate":"2025-11-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145478510","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-11-01DOI: 10.1016/j.chieco.2025.102591
Jiao Wang , Dianzhang Zou , Yi Chen , Jingwen Xue
Despite the high prevalence of smoking and drinking in China, the drivers of these behaviors have received limited attention. This study examines the impact of rising housing prices on residents' smoking and drinking habits and investigates the underlying mechanisms. Our findings indicate that rising housing prices significantly increase smoking and alcohol consumption among adult Chinese men. Specifically, a 10 % increase in housing prices is associated with an average 3.85 % rise in the probability of smoking, an increase of 0.73 cigarettes smoked per day, and a 3.9 % increase in the likelihood of frequent drinking. The key mechanism driving this increase is the stress-relief effect. Specifically, men facing heightened mating market pressure as well as among those with lower levels of education and income exhibit higher tobacco and alcohol consumption in response to rising housing prices. Although smoking and drinking are employed as coping mechanisms for stress, these behaviors exacerbate physical health issues without improving mental health. This paper provides robust empirical evidence from China, illustrating that mental stress induced by escalating housing costs is a key driver of increased tobacco and alcohol use.
{"title":"Booming costs, boozing habits: How soaring housing prices drive smoking and drinking in China","authors":"Jiao Wang , Dianzhang Zou , Yi Chen , Jingwen Xue","doi":"10.1016/j.chieco.2025.102591","DOIUrl":"10.1016/j.chieco.2025.102591","url":null,"abstract":"<div><div>Despite the high prevalence of smoking and drinking in China, the drivers of these behaviors have received limited attention. This study examines the impact of rising housing prices on residents' smoking and drinking habits and investigates the underlying mechanisms. Our findings indicate that rising housing prices significantly increase smoking and alcohol consumption among adult Chinese men. Specifically, a 10 % increase in housing prices is associated with an average 3.85 % rise in the probability of smoking, an increase of 0.73 cigarettes smoked per day, and a 3.9 % increase in the likelihood of frequent drinking. The key mechanism driving this increase is the stress-relief effect. Specifically, men facing heightened mating market pressure as well as among those with lower levels of education and income exhibit higher tobacco and alcohol consumption in response to rising housing prices. Although smoking and drinking are employed as coping mechanisms for stress, these behaviors exacerbate physical health issues without improving mental health. This paper provides robust empirical evidence from China, illustrating that mental stress induced by escalating housing costs is a key driver of increased tobacco and alcohol use.</div></div>","PeriodicalId":48285,"journal":{"name":"中国经济评论","volume":"95 ","pages":"Article 102591"},"PeriodicalIF":5.5,"publicationDate":"2025-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145617080","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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