{"title":"China's Financial System and Economy: A Review","authors":"Zhiguo He, Wei Wei","doi":"10.1146/annurev-economics-072622-095926","DOIUrl":"https://doi.org/10.1146/annurev-economics-072622-095926","url":null,"abstract":"China's financial system has been integral to its spectacular economic growth over the past 40 years. We review the recent literature on China's financial system and its connections to the Chinese economy based on the categories of Aggregate Financing to the Real Economy (AFRE), a broad measure of the nation's yearly flow of liquidity accounting for unique features of China's financial system. While early work on China's financial system emphasizes the state-owned enterprise reform, the recent literature explores other more market-based financing channels—including shadow banking—that grew rapidly after 2010 and have become important components of AFRE. These new financing channels not only are intertwined with each other, but also, and more importantly, are often ultimately tied back to the dominant banking sector in China. Understanding the mechanisms behind these channels and their intrinsic connections is crucial to alleviate capital allocation distortion and mitigate potential systemic financial risk in China.","PeriodicalId":47891,"journal":{"name":"Annual Review of Economics","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-09-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134990125","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Text Algorithms in Economics","authors":"Elliott Ash, Stephen Hansen","doi":"10.1146/annurev-economics-082222-074352","DOIUrl":"https://doi.org/10.1146/annurev-economics-082222-074352","url":null,"abstract":"This article provides an overview of the methods used for algorithmic text analysis in economics, with a focus on three key contributions. First, we introduce methods for representing documents as high-dimensional count vectors over vocabulary terms, for representing words as vectors, and for representing word sequences as embedding vectors. Second, we define four core empirical tasks that encompass most text-as-data research in economics and enumerate the various approaches that have been taken so far to accomplish these tasks. Finally, we flag limitations in the current literature, with a focus on the challenge of validating algorithmic output. Expected final online publication date for the Annual Review of Economics, Volume 15 is August 2023. Please see http://www.annualreviews.org/page/journal/pubdates for revised estimates.","PeriodicalId":47891,"journal":{"name":"Annual Review of Economics","volume":" ","pages":""},"PeriodicalIF":5.6,"publicationDate":"2023-07-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49488816","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Gender Differences in Negotiation: Can Interventions Reduce the Gap?","authors":"María P. Recalde, L. Vesterlund","doi":"10.1146/annurev-economics-092022-115353","DOIUrl":"https://doi.org/10.1146/annurev-economics-092022-115353","url":null,"abstract":"Gender differences in negotiation are seen as contributing to the persistent gender gaps in labor market outcomes. We review the literature on interventions aiming to mute differences in negotiation and assess their effectiveness in reducing the gender pay gap. We present research on initiatives that aspire to increase how often and how women negotiate, as well as institutional changes that ban negotiations, ban requests for employee salary history, and improve wage transparency. Along with exploring the effectiveness of these initiatives, we point to unintended consequences that warrant caution at implementation. The review makes clear that initial efforts to push women to negotiate more like men have shifted to alter instead the conditions of the negotiation. This shift results not only from wanting to consider policies that “fix the institutions” rather than “fixing the women,” but also from evidence that these interventions are more successful in securing pay equity. Expected final online publication date for the Annual Review of Economics, Volume 15 is August 2023. Please see http://www.annualreviews.org/page/journal/pubdates for revised estimates.","PeriodicalId":47891,"journal":{"name":"Annual Review of Economics","volume":" ","pages":""},"PeriodicalIF":5.6,"publicationDate":"2023-06-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47735814","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Economics of Border Carbon Adjustment: Rationale and Impacts of Compensating for Carbon at the Border","authors":"L. Fontagné, Katheline Schubert","doi":"10.1146/annurev-economics-082322-034040","DOIUrl":"https://doi.org/10.1146/annurev-economics-082322-034040","url":null,"abstract":"International trade contributes directly to global greenhouse gas emissions, as the carbon content of high-emission products is priced differently in different countries. This phenomenon is termed carbon leakage. Thus, not putting a price on carbon is theoretically equivalent to an export subsidy, although that would be difficult to challenge in the context of multilateral trade law. Leakage can be alleviated by pricing the carbon embedded in imported products through a border carbon adjustment (BCA), be it a tax, a carbon tariff, or a regulation requiring the purchase of emissions allowances. The design of a BCA is a compromise between environmental effectiveness in preventing leakage, economic effectiveness in preserving competitiveness and ensuring acceptability, technical feasibility of the implementation, and World Trade Organization compatibility. An import-limited BCA is more effective than free emissions allowances in reducing leakage, but it does not preserve the export competitiveness of the country imposing it. Expected final online publication date for the Annual Review of Economics, Volume 15 is August 2023. Please see http://www.annualreviews.org/page/journal/pubdates for revised estimates.","PeriodicalId":47891,"journal":{"name":"Annual Review of Economics","volume":" ","pages":""},"PeriodicalIF":5.6,"publicationDate":"2023-05-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49214576","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Regulating Collusion","authors":"Sylvain Chassang, Juan Ortner","doi":"10.1146/annurev-economics-051520-021936","DOIUrl":"https://doi.org/10.1146/annurev-economics-051520-021936","url":null,"abstract":"We attempt to provide a systemic view of the process of regulating collusion, including detection and prosecution as well as bargaining between firms and regulators via consent orders, the production of evidence, and containment measures that may be taken if collusion cannot be addressed with more direct means. In addition, we try to do justice to the peculiarities of the legal system: Modeling the courts as they are, rather than as economists think they should be, is essential for economic analysis to improve the way collusion is regulated. Expected final online publication date for the Annual Review of Economics, Volume 15 is August 2023. Please see http://www.annualreviews.org/page/journal/pubdates for revised estimates.","PeriodicalId":47891,"journal":{"name":"Annual Review of Economics","volume":" ","pages":""},"PeriodicalIF":5.6,"publicationDate":"2023-03-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48103434","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Antitrust Reform: An Economic Perspective","authors":"Richard J. Gilbert","doi":"10.1146/annurev-economics-082222-070822","DOIUrl":"https://doi.org/10.1146/annurev-economics-082222-070822","url":null,"abstract":"There is widespread dissatisfaction with existing antitrust enforcement. The European Union has enacted comprehensive legislation to address perceived antitrust limitations, and several proposals to amend US antitrust laws have followed its lead. Most of the actual and proposed laws target firms that dominate the digital economy, while others have measures to tighten antitrust enforcement more generally. Market power has increased in the United States and most advanced economies, but it has not been uniformly associated with higher prices or lower productivity. Nonetheless, antitrust reforms can benefit consumers and address concerns about the concentration and exercise of economic power. In the United States, legislation would be desirable to amend rulings that are excessively deferential to antitrust defendants. However, most enacted and proposed reforms include prohibitions or obligations that depart from traditional antitrust principles and create potential risks for consumer welfare. Expected final online publication date for the Annual Review of Economics, Volume 15 is August 2023. Please see http://www.annualreviews.org/page/journal/pubdates for revised estimates.","PeriodicalId":47891,"journal":{"name":"Annual Review of Economics","volume":" ","pages":""},"PeriodicalIF":5.6,"publicationDate":"2023-03-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47115244","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Organization of Social Enterprises","authors":"Robert H. Gertner","doi":"10.1146/annurev-economics-082222-075249","DOIUrl":"https://doi.org/10.1146/annurev-economics-082222-075249","url":null,"abstract":"Growing interest in the role of business entities in addressing social problems highlights the potential of social enterprises—organizations that cover all or most of their costs through revenue-generating business and have an objective to address a societal problem. A social enterprise can be an efficient and effective way to create social value by internalizing externalities, exploiting complementarities with commercial activities, providing better prices or quality to disadvantaged customers, and reducing the need for scarce philanthropic support. The challenges of managing an organization for financial success and social impact may limit their potential. Social enterprises can be for-profit or nonprofit organizations. The legal and institutional structure of for-profit and nonprofit governance and financing makes it challenging for a social entrepreneur to find a business model and organization structure to succeed. Expected final online publication date for the Annual Review of Economics, Volume 15 is August 2023. Please see http://www.annualreviews.org/page/journal/pubdates for revised estimates.","PeriodicalId":47891,"journal":{"name":"Annual Review of Economics","volume":"1 1","pages":""},"PeriodicalIF":5.6,"publicationDate":"2023-02-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45342353","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Labor Market Insurance Policies in the Twenty-First Century","authors":"T. Boeri, P. Cahuc","doi":"10.1146/annurev-economics-082322-035621","DOIUrl":"https://doi.org/10.1146/annurev-economics-082322-035621","url":null,"abstract":"The COVID-19 crisis was a stress test for unemployment insurance schemes as it involved a sudden and unexpected shutdown of a very large set of activities. This forced countries to introduce, often from scratch, income support schemes for workers under new forms of employment and for the self-employed. There was also a considerable expansion of short-time work schemes. As we move past this crisis, labor markets are likely to be characterized by substantial labor reallocation, and major innovations in labor market policy will be required to smooth consumption of workers involved in this reallocation. We survey the large body of research on schemes complementary to unemployment insurance to reduce the costs of reallocation. We focus on short-time work, partial unemployment insurance, and wage insurance and compare their properties to those of standard unemployment benefits. Next we present the main empirical results on the effects of wage insurance, partial unemployment insurance, and short-time work. In the final section we discuss directions for further research. Expected final online publication date for the Annual Review of Economics, Volume 15 is August 2023. Please see http://www.annualreviews.org/page/journal/pubdates for revised estimates.","PeriodicalId":47891,"journal":{"name":"Annual Review of Economics","volume":" ","pages":""},"PeriodicalIF":5.6,"publicationDate":"2023-02-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47177625","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Networks and Economic Fragility","authors":"M. Elliott, B. Golub","doi":"10.1146/annurev-economics-051520-021647","DOIUrl":"https://doi.org/10.1146/annurev-economics-051520-021647","url":null,"abstract":"Many firms, banks, or other economic agents embedded in a network of codependencies may experience a contemporaneous, sharp drop in functionality or productivity following a shock—even if that shock is localized or moderate in magnitude. We offer an extended review of motivating evidence that such fragility is a live concern in supply networks and in financial systems. We then discuss network models of fragility, focusing on the forces that make aggregate functionality especially sensitive to the economic environment. The key structural features of networks that determine their fragility are reviewed, with an emphasis on the importance of phase transitions. We then turn to endogenous decisions, both by market participants (e.g., firms investing in network formation and robustness) and by planners (e.g., authorities undertaking macroprudential regulation). Fragility has some distinctive implications for such decisions.","PeriodicalId":47891,"journal":{"name":"Annual Review of Economics","volume":" ","pages":""},"PeriodicalIF":5.6,"publicationDate":"2022-08-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47756952","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Experimental Economics: Past and Future","authors":"Guillaume Fréchette, Kim Sarnoff, Leeat Yariv","doi":"10.1146/annurev-economics-081621-124424","DOIUrl":"https://doi.org/10.1146/annurev-economics-081621-124424","url":null,"abstract":"Over the past several decades, lab experiments have offered economists a rich source of evidence on incentivized behavior. In this article, we use detailed data on experimental papers to describe recent trends in the literature. We also discuss various experimentation platforms and new approaches to the design and analysis of the data they generate.","PeriodicalId":47891,"journal":{"name":"Annual Review of Economics","volume":"1 1","pages":""},"PeriodicalIF":5.6,"publicationDate":"2022-08-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41708242","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}