Publications

[1] "Capital Spillover, House Prices, and Consumer Spending: Quasi-Experimental Evidence from House Purchase Restrictions", with Yinglu Deng, Li Liao and Yu Zhang, The Review of Financial Studies 35(6), June 2022, pp.3060-3099. [WP version]

• Policy-induced out-of-town housing demand increases house prices. The rising house prices lead to an increase in household consumption through the housing wealth effect channel. The welfare consequences of the house price increase are redistributive: renters lose and homeowners gain.

[2] "Subsidizing Failing Firms: Evidence from Chinese Restaurants", with Yinglu Deng, Fangzhou Lu and Hao Zheng, forthcoming at Journal of Financial and Quantitative Analysis. [WP version] 

• Financial stimulus policies (rent reductions) during macro distress improve restaurants' performance, and strengthen private efforts to resurrect. The effect of rent reductions varies with a restaurant's size and organizational structure. 

Working Papers

[1] "Getting the Banks on Board: Accounts Receivable Financing in the US”  

• I hand collect data on the contracts of accounts receivable based loans and trade credit terms. Accounts receivable based loans are widely used by product sellers experiencing payment delays. Seller moral hazard that leads to bad-quality products is one determinant of payment delays, and although difficult to observe in existing data, can be uncovered from these loan terms. Lenders help improve the quality of sellers. 

• Conferences: SFS Cavalcade 2023

[2] "The Case for Convenience: How CBDC Design Choices Impact Monetary Policy Pass-Through", with Rodney Garratt and Haoxiang Zhu [updated June 2022].

• We explore the implications of introducing a central bank digital currency (CBDC) through commercial banks that differ in size, focusing on two design features of CBDCs: the interest rate and payment convenience.

• Conferences: AFA 2022, SEM 2022 (Calgary)

[3] "Undercutting the Exchanges: Private Trading, Fee Competition, and Price Discovery at the Market Close", with Jingxiong Hu [updated August 2022]. 

• "Guaranteed close" executes orders for investors at close prices set on the primary exchange, and is subject to dual trading. Trade volume at "guaranteed close" reached about 30% of that in close auctions. We find that "guaranteed close" improves price discovery, both empirically and theoretically.

• Conferences: EuroFA 2022, NFA 2022, FMA 2022, AsianFA 2022, Microstructure Exchange 2022, Trans-Atlantic Doctoral Conference 2021, MFA 2020

Permanent Working Papers

[1] "The Aggregate Return to Venture Investors", with Ravi Jagannathan, and Shumiao Ouyang.

• We consider the aggregate portfolio of all equity investments made in various funding rounds of 17,242 ventures that had their first funding round between 1980-2006. The Kaplan and Schoar (2005) Public Market Equivalent (PME) measure of performance is 1.42, i.e., each dollar invested returned 1.42 dollars after adjusting for risk and time value. We use an imputation model following Hall and Woodward (2010) to address missing data issues.  

• Conferences: AFA 2020