The 9th Biennial Conference of Hong Kong Economic Association
12 – 13 December 2016
Conference Programme
12 December 2016 (Monday)
8:30 – 9:00
Registration
Venue: 1/F, K.K. Leung Building
9:00 – 9:10
Welcome Remarks
Larry Qiu, President, Hong Kong Economic Association
Venue: Room 101, 1/F, K.K. Leung Building
9:10 – 10:10
Chung Hon-Dak Plenary Session 1
Venue: Room 101, 1/F, K.K. Leung Building
Chairperson: Larry Qiu, The University of Hong Kong
Speaker: Prof. Yang Yao, Peking University
Title: Understanding China's Selectocracy
10:10 – 10:30
Tea Break
10:30 – 12:10
Concurrent Session 1
Session 1A Microeconomic Theory I
Venue: Room 101, 1/F, K.K. Leung Building
Chairperson: Dongkyu Chang, City University of Hong Kong
“Choices in the 11-20 Game: The Role of Risk Aversion” Kingking Li, City University of Hong Kong and Kang Rong, Shanghai University of Finance and Economics
“Impressionable Voters” Costel Andonie, City University of Hong Kong and Daniel Diermeier, The University of Chicago
“Expropriation and Incentives within Organizations” Gulseren Mutlu, City University of Hong Kong and Gurupdesh S. Pandher, University of Windsor & University of British Columbia
“Delay in Bargaining with Outside Options” Dongkyu Chang, City University of Hong Kong
Session 1B Labor Economics
Venue: Room 603, 6/F, K.K. Leung Building
Chairperson: Naijia Guo, The Chinese University of Hong Kong
“Pollution and Labor Supply in a Contest Environment: Evidence from Outdoor Tennis Tournaments” Haoming Liu, National University of Singapore
“The Demographic Consequences of Sex-Selection Technology” Juan Pantano, The University of Chicago
“On-the-Job Training and On-the-Job Search: Wage-Training Contracts in a Frictional Labor Market” Seung-gyu Sim, University of Tokyo
“A Matching Model of Intergenerational Co-residence and Its Application in China” Naijia Guo, The Chinese University of Hong Kong
Session 1C Demography and Development
Venue: Room 1121, 11/F, K.K. Leung Building
Chairperson: Tatsuyoshi Miyakoshi, Hosei University
“Population Aging and Housing Prices” Siew Ling Yew, Monash University
“Intergenerational Transfers, Demographic Transition, and Altruism: Problems in Developing Asia” Yoshitaka Koda, Chulalongkorn University
“Ultimogeniture to Primogeniture: Women’s Fertility or Virginity” Danli Wang, Shanghai University of International Business and Economics
“New Eldercare System and Optimal Population Growth in an Aging European Society –OLG Framework–” Tatsuyoshi Miyakoshi, Hosei University
Session 1D Housing, Consumption, and Competition Law
Venue: Room 1303, 13/F, K.K. Leung Building
Chairperson: Chi Ho Tang, Hong Kong Shue Yan University
“What does the House Price-to-Income Ratio tell us about the Housing Affordability: A Theory and International Evidence” Chi Ho Tang, Hong Kong Shue Yan University
“Can the Laffer Curve for Consumption Tax be Hump-Shaped?” Kazuki Hiraga, Tokai University
“The Inflation Hedging Ability of Real Estate Price Index in Hong Kong Zhiping Zhou, Wuhan University
“Competition Ordinance of Hong Kong: Merger Guidelines with focus on Safe Harbors” Xian Yu Huang, Chu Hai College of Higher Education
12:10 – 13:30
Conference Lunch
Venue: Concourse, G/F, K.K. Leung Building
EconJobMarket Asia Poster Session
Venue: Concourse, G/F, K.K. Leung Building
“Attack-Prevention and Damage-Control Investments in Cybersecurity” Wing Man Wynne Lam, Toulouse School of Economics
“The Welfare Gains of Mixed Policy Instruments within Voluntary Emission Cap-and-Trade Programs” Yaran Jin, University of Texas at Austin
“Collusion Detection at Forest Service Timber Sales” Chaohai Shen, Pennsylvania State University
“Vertical Contract That Reference Rivals” Fan Liu, University of Texas at Austin
“Fiscal Consolidation in a Small Open Economy with Sovereign Risk” Zixi Liu, Frankfurt University
“Credibility of Deterrence and Extensive-Form Rationalizability” Shigeki Isogai, Pennsylvania State University
“Opposite Hand Advantage and the Overrepresentation of Left-handed Players in MLB” Ted Chang, National Taiwan University
“Stochastic Differential Utility, Induced Uncertainty, and Strategic Asset Allocation” Qing Shi, The University of Hong Kong
13:30 – 15:10
Concurrent Session 2
Session 2A Industrial Organization and Trade
Venue: Room 101, 1/F, K.K. Leung Building
Chairperson: Tianle Zhang, Lingnan University
“Bundled Procurement”, Jianpei Li, University of International Business and Economics
“The Size of Symmetric Free-Trade Blocs and World Welfare” Tai-Liang Chen, Zhongnan University of Economics and Law
“Bless or Curse? On Pharmaceutical Pay-for-Delay Patent Settlements” Yucheng Ding, Wuhan Univeristy
“Patentability, R&D Direction, and Cumulative Innovation” ianle Zhang, Lingnan University
Session 2B International Trade and Urban Economics
Venue: Room 603, 6/F, K.K. Leung Building
Chairperson: Cheng Chen, The University of Hong Kong
“A Simple Model of the Chinese Hukou System and Some Ongoing Reforms” Lex Zhao, Kobe University
“Outward FDI and Domestic Input Distortions: Evidence from Chinese Firms” Cheng Chen, The University of Hong Kong and Hongyong Zhang, The Research Institute of Economy, Trade and Industry
“What Drives Home Market Advantage?” Shengyu Li, Durham University
“Input Prices, Productivity, and Trade: Evidence from Chinese Paint Manufacturers” Hongsong Zhang, The University of Hong Kong
Session 2C Behavioral Economics and Taxation
Venue: Room 1121, 11/F, K.K. Leung Building
Chairperson: Chiu Yu Ko, National University of Singapore
“Tax Evasion, Informal Payments, Virtue and Hypocrisy”, John E. Anderson, University of Nebraska
“High-Income Taxpayers’ Charitable Donations – Evidence from Taiwan’s Tax Returns” Shih-Ying Wu, National Tsing Hua University
“On the Probabilistic Transmission of Continuous Cultural Traits” Jiabin Wu, University of Oregon
“Sharing Sequential Values in a Network” Chiu Yu Ko, National University of Singapore
Session 2D Macro and Finance Theory
Venue: Room 1303, 13/F, K.K. Leung Building
Chairperson: Wai Man Tse, Chu Hai College of Higher Education
“Progressive Taxation as an Automatic Destabilizer under Endogenous Growth” Jang-Ting Guo, University of California, Riverside
“Testing the Stationarity of the Euro Forward Premium: Evidence from Quantile Unit Root Test” Wan-Shin (Cindy) Mo, Chung Yuan Christian University
“Optimal Information Disclosure in Advance Selling with Consumer Heterogeneity in Information Requirements” Chenhang Zeng, Shandong University
“Closed-form Solutions for American Options” Wai Man Tse, Chu Hai College of Higher Education
15:10 – 15:25
Tea Break
15:25 – 17:05
Concurrent Session 3
Session 3A Chinese Economy
Venue: Room 101, 1/F, K.K. Leung Building
Chairperson: Kang Hua Cao, Hong Kong Baptist University
“Marketization and the Sources of Growth and Regional Disparities in China” Kang Hua Cao, Hong Kong Baptist University
“Forced Gifts: The Burden of Being a Friend” Ruixin Wang, Hong Kong Baptist University
“The Great Gatsby Curve in China: Cross-Sectional Inequality and Intergenerational Mobility” Yi Fan, National University of Singapore
Session 3B Mechanism Design: Theory and Practice
Venue: Room 603, 6/F, K.K. Leung Building
Chairperson: Pai Xu, The University of Hong Kong
“Information Aggregation with Costly Reporting” Martin Osborne, University of Toronto
“Optimal Mechanism with Budget Constraint Bidders” Sergei Severinov, University of British Columbia
“Nonlinear Pricing with Asymmetric Competion and Complete Information” Adam Chi Leung Wong, Lingnan University
“Foreclosure Auctions” Pai Xu, The University of Hong Kong
Session 3C Environment and Trade
Room: Room 1121, 11/F, K.K. Leung Building
Chairperson: Naomi Kodama, Hitotsubashi University
“Trade and Environmental Policy with Local & Transnational Pollution” Feng Jiang, Concordia University
“The Effects of Japanese Customer Firms’ Overseas Outsourcing on Supplier Firms’ Performance” Naomi Kodama, Hitotsubashi University
“Trade Liberalization and Skill Wage Premium: from the perspective of Quality Upgrading” Yihong Tang, Central University of Finance and Economics
“A Model of Trade and Productivity Improvement through Knowledge Capital Formation” Chun-Kai Wang, Shandong University
Session 3D Labor and Education
Room: Room 1303, LG1/F, K.K. Leung Building
Chairperson: Yan Lau, Reed College
“The Effectiveness of Cram Schools as Inputs of Education Production” Yan Lau, Reed College
“Expanding College Access in Taiwan, 1978 – 2014: Effects on Graduate Quality and Income Inequality” Shao-Hsun Keng, National University of Kaohsiung
“Network Effects and the Black-White Disparities in the Labor Market” Gergely Horvath, Xian Jiaotong Liverpool University
“Minimum Wage and Real Wage Inequality: Evidence from Pass-Through to Retail Prices” Justin Hilyin Leung, University of Chicago
17:05 – 17:20
Tea Break
17:20 – 18:20
Chung Hon-Dak Plenary Session 2
Venue: Room 101, 1/F, K.K. Leung Building
Chairperson: Larry Qiu, The University of Hong Kong
Speaker: Prof. Sir James Mirrlees, The Chinese University of Hong Kong
Title: “Dealing with Inequality”
19:00
Conference Dinner
13 December 2016 (Tuesday)
9:00 – 10:40
Concurrent Session 4
Session 4A Trade and Development
Venue: Room 101, 1/F, K.K. Leung Building
Chairperson: Shui-Ki Wan, Hong Kong Baptist University
“The Nature of Western and Islamic Civilizations: Formation, Evolution and Clashes” Pak Hung Mo, Hong Kong Baptist University
“Fragmentation and DVAR” Han (Steffan) Qi, Hong Kong Baptist University
“Measuring and Testing the role of Components of Life Satisfaction” Shui-Ki Wan, Hong Kong Baptist University
“Technology Cycle, Knowledge Capital and Comparative Advantage” Xiaoping Chen, Nanyang Technological University
Session 4B Environmental and Energy Economics
Venue: Room 603, 6/F, K.K. Leung Building
Chairperson: David Broadstock, The Hong Kong Polytechnic University
“Temperature Effects on Productivity and Factor Reallocation: Evidence from a half million Chinese manufacturing plants” Peng Zhang, The Hong Kong Polytechnic University
“The Impact of International Oil Price Uncertainty on Household Consumption Expenditure across Asia” David Broadstock, The Hong Kong Polytechnic University
“The role of China in the World Oil Market” Raymond Li, The Hong Kong Polytechnic University
“Spying in Contests” Zhuoqiong Chen, London School of Economics
Session 4C Microeconomic Theory II
Venue: Room 1121, 11/F, K.K. Leung Building
Chairperson: Ye Jin, New York University Shanghai
“Does Level-k Behavior Imply Level-k Thinking?” Ye Jin, New York University Shanghai
“Constrained No Regret Learning” Ye Du, The Southwestern University of Finance and Economics
“Ranking Disclosure Policies in All-Pay Auctions” Hongkun Ma, Shandong University
“Cross-Holdings in Cournot Duopoly with Asymmetric Information” Longhua Liu, Shandong University
Session 4D Macro, Trade, and R&D
Venue: Room 1303, 13/F, K.K. Leung Building
Chairperson: Huang (Angela) Kui, National University of Singapore
“Time, Transport Type, and Trade Elasticity” Chu Ping Lo, National Taiwan University
“By force of Demand: Explaining Cyclical Fluctuation of International Trade and Government Spending” Mingming Jiang, Shandong University
“Whether Pre-competition Cooperation or Full Cooperation on R&D Maximizes Overall Industry Profit” Hsueh-Jen Hsu, Yuan Ze University
“On the Number and Size of Banks: Efficiency and Equilibrium” Huang (Angela) Kui, National University of Singapore
10:40 – 11:00
Tea Break
11:00 – 12:00
Chung Hon-Dak Plenary Session 3
Venue: Room 101, 1/F, K.K. Leung Building
Chairperson: Larry Qiu, The University of Hong Kong
Speaker: Prof. Pol Antràs, Harvard University
Title: “On the Geography of Global Value Chains”
12:00 – 13:30
Lunch
13:30 – 15:10
Concurrent Session 5
Session 5A Experimental Economics
Venue: Room 101, 1/F, K.K. Leung Building
Chairperson: Weiwei Weng, Hong Kong Baptist University
“‘Fair’ quota allocation and Regional Inequality” Weiwei Weng, Hong Kong Baptist University
“Group Formation and Performance: Field Experimental Evidence” Jie Gong, National University of Singapore
“Sunk Cost as a Self-Disciplining Device” Fuhai Hong, Nanyang Technological University
“Intertemporal Consumption with Risk: A Revealed Preference Analysis” Songfa Zhong, National University of Singapore
Session 5B Open Macroeconomics and Fiscal Policy
Venue: Room 603, 6/F, K.K. Leung Building
Chairperson: Hao Jin, Xiamen University
“Capital Controls and Financial Frictions in a Small Open Economy” Shigeto Kitano, Kobe University and Kenya Takaku, Aichi Shukutoku University
“The Open Policy Trinity may not be a Trilemma in Reality: A perspective from an interest rate bond hypothesis” Helen Huixian Zhang, The University of Auckland
“Fiscal Consolidation in a Small Open Economy with Sovereign Risk” Zixi Liu, Goethe University Frankfurt
“Quadrilemma not Trilemma: Fiscal Policy Matters” Hao Jin, Xiamen University
Session 5C Asian Economies
Venue: Room 1121, 11/F, K.K. Leung Building
Chairperson: Heung Chun Tsang, Hong Kong Institute for Monetary Research
“The Diffusion and Dynamics of Producer Prices, Deflationary Pressure Across Asian Countries, and the Role of China” Heung Chun Tsang, Hong Kong Institute for Monetary Research
“Market Failure and Effective Financial Consumer Protection in Korea” Gyoung-Gyu Choi and Soonhyun Kwon, Dongguk University
“Immunizing From the Terror: China’s New Comparative Advantage?” Bing Li and Xiaochen Yan, Central University of Finance and Economics
“Will Fiscal Decentralization Influence FDI Inflows? A Spatial Study on Chinese Cities” Jing Wang, Chongqing Technology and Business University
Session 5D Wellbeing: Health, Environment, and Cyberspace
Venue: Room 1303, 13/F, K.K. Leung Building
Chairperson: Fwu-Chang (Eric) Yan, Hubei University of Economics
“Can Electricity Trade Reduce Carbon Emissions without Harming Economic Growth?” Fwu-Chang (Eric) Yan, Hubei University of Economics
“Recalculation of CO2 Emissions embodied in China’s Import and Export: A perspective of Value-added Trade” Xueliu Xu, Dalian University of Technology
“Attack-Prevention and Damage Control Investments in Cybersecurity” Wing Man Wynne Lam, University of Liege
“The Impacts of Marketization and Subsidies on the Treatment Quality Performance of the Chinese Health-care Sector” Xinju He, Hong Kong Baptist University
15:10 – 15:30
Tea Break
15:30 – 17:10
Concurrent Session 6
Session 6A Public Economics
Venue: Room 101, 1/F, K.K. Leung Building
Chairperson: Simon C. Fan, Lingnan University
“Health Spending, Savings and Fertility in a Lifecycle-dynastic Model with Longevity Externalities” Jie Zhang, Chongqing University and National University of Singapore
“The Effect of China’s Political Relations on her International Trade” Simon C. Fan, Lingnan University
“Happiness and Government: the Role of Public Spending and Public Governance” Lok-sang Ho, Chu Hai College of Higher Education
“Corruption, Pollution and Technology Transfer” Xuyao Zhang, National University of Singapore
Session 6B Innovation
Venue: Room 603, 6/F, K.K. Leung Building
Chairperson: Po-Hsuan Hsu, The University of Hong Kong
“Strategic Rivalry and Innovation” Alminas Zaldokas, The Hong Kong University of Science and Technology
“Regulation, Innovation, and Firm Selection: The Porter Hypothesis revisited” Mohan Zhou, Central University of Finance and Economics
“Entrepreneurial Transition: How Does Founder Exit Affect Firm Innovation Trajectory?” Bo Zhao, The University of Hong Kong
“Leviathan Inc. and Sustainability: State-ownership and Environmental Engagement” Po-Hsuan Hsu, The University of Hong Kong
Session 6C Agricultural, Productivity, and Competitiveness
Venue: Room 1121, 11/F, K.K. Leung Building
Chairperson: Sung Ko Li, Hong Kong Baptist University
“Measuring the Effects of Decollectivization on China’s Agricultural Growth: A Panel Instrumental Approach” Qiang Chen, Shandong University
“The Impact of Land Price Marketization on Input and Technology Choices: Evidence from China’s Industrial Sector” Aidong Zhao, Nanjing Agricultural University
“The Nature of Scale efficiency and Its Interpretation” Sung Ko Li, Hong Kong Baptist University
“Is it Worthwhile to Study the Competitiveness of Countries?” Chun Kei Tsang, Hong Kong Baptist University
Session 6D Macro and Banking
Venue: Room 1303, 13/F, K.K. Leung Building
Chairperson: Guannan Luo, City University of Hong Kong
“’Modern’ Macroeconometrics: statistical alchemy at the final stage” Samuel Meng, University of New England
“How Do the Minimum Capital Requirements Affect Banking Competition and Profitability?” Louie (Yi) Liu, The University of California, Irvine
“Effect of Demand Elasticity and Product Durability on Involuntary Part-Time Employment” Guannan Luo, City University of Hong Kong
“Forward Guidance And Credible Monetary” Bingbing Dong, Central University of Finance and Economics