Working Papers:
Firm Foundations: Legal Systems and Economic Performance in Colonial Shanghai, 1903-1934 (Job Market Paper)
Abstract: How important are legal systems to economic performance? To address this question, I focus on a historical period from colonial Shanghai, where quite different legal systems operated in the International Settlement andFrench Concession. In particular, employing novel historical data, I examine 1903–1934 land value discontinuities at the border between these Settlements. Substantial discontinuities were found in the 1900s, with higher land values associated with the International Settlement. However, by the 1930s, this land value advantage of the International Settlement had disappeared. A closer look at the institutions reveals that the French Concession adapted its operation to be more business friendly, under competition from the neighboring International Settlement. This suggests that the French legal system per se was not a barrier to economic growth, but rather it could function well if interpreted and implemented properly. This paper thus adds to evidence that formal legal system is not a key determinant of economic performance.
Firm Foundations: Legal Systems and Economic Performance in Colonial Shanghai, 1903-1934 (Job Market Paper)
Abstract: How important are legal systems to economic performance? To address this question, I focus on a historical period from colonial Shanghai, where quite different legal systems operated in the International Settlement andFrench Concession. In particular, employing novel historical data, I examine 1903–1934 land value discontinuities at the border between these Settlements. Substantial discontinuities were found in the 1900s, with higher land values associated with the International Settlement. However, by the 1930s, this land value advantage of the International Settlement had disappeared. A closer look at the institutions reveals that the French Concession adapted its operation to be more business friendly, under competition from the neighboring International Settlement. This suggests that the French legal system per se was not a barrier to economic growth, but rather it could function well if interpreted and implemented properly. This paper thus adds to evidence that formal legal system is not a key determinant of economic performance.
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firm_foundations_v7.pdf |
Transportation, Decentralization, and Path Dependence: How did the Old Tramway Shape Shanghai, China?
Abstract: This article studies the short- and long-run economic consequences of the now-extinct Shanghai tramway. Tramways dominated urban transit in Shanghai from the year 1908 to the 1930s, and were in service until the year 1975. With the geolocation of the tramway lines on both historical cadastral maps and current Google maps, the article finds out that after the arrival of the tramway, land lots close to the tramway lines experienced a larger increase in land value relative to those far away from the tramway lines, and that the reduction in transportation costs led to a flattening land value gradient with respect to distance from the central business district (CBD). It also finds out that the tramway still influences the current pattern of urban land value, even nearly fifty years after the removal of the last tramway track. Such persistent influence can be largely explained by the follow-on amenities near the tramway lines. The evidence found in this article suggests that the tramway in Shanghai promoted decentralization by making the CBD more accessible from remote locations in its heyday, and influences modern behaviors through the mutually reinforced private and public coordination of economic activities.
Work in Progress:
Shanghai Nostalgia: The Cultural Heritage in Historic Buildings
Abstract: This paper uses the hedonic pricing model to study the effects of cultural heritage on the market value of historic properties and their neighboring houses in Shanghai. Though lacking modern facilities, community management, and even necessary renovation, residential complexes that were built during the colonial era (1845-1943) are highly valued by the market, and have not depreciated with age. Generally, a designated historic building is associated with a higher price and positive externalities, but being part of an ensemble with a historic ambiance plays a more important role than the designation itself.
References:
Christopher M. Meissner (Chair)
[email protected]
Gregory Clark
[email protected]
Shu Shen
[email protected]
Abstract: This article studies the short- and long-run economic consequences of the now-extinct Shanghai tramway. Tramways dominated urban transit in Shanghai from the year 1908 to the 1930s, and were in service until the year 1975. With the geolocation of the tramway lines on both historical cadastral maps and current Google maps, the article finds out that after the arrival of the tramway, land lots close to the tramway lines experienced a larger increase in land value relative to those far away from the tramway lines, and that the reduction in transportation costs led to a flattening land value gradient with respect to distance from the central business district (CBD). It also finds out that the tramway still influences the current pattern of urban land value, even nearly fifty years after the removal of the last tramway track. Such persistent influence can be largely explained by the follow-on amenities near the tramway lines. The evidence found in this article suggests that the tramway in Shanghai promoted decentralization by making the CBD more accessible from remote locations in its heyday, and influences modern behaviors through the mutually reinforced private and public coordination of economic activities.
Work in Progress:
Shanghai Nostalgia: The Cultural Heritage in Historic Buildings
Abstract: This paper uses the hedonic pricing model to study the effects of cultural heritage on the market value of historic properties and their neighboring houses in Shanghai. Though lacking modern facilities, community management, and even necessary renovation, residential complexes that were built during the colonial era (1845-1943) are highly valued by the market, and have not depreciated with age. Generally, a designated historic building is associated with a higher price and positive externalities, but being part of an ensemble with a historic ambiance plays a more important role than the designation itself.
References:
Christopher M. Meissner (Chair)
[email protected]
Gregory Clark
[email protected]
Shu Shen
[email protected]