Economic Affairs
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We study the impact of marital property legislation passed in the US South in the 1840s on households’ investment in risky, entrepreneurial projects. These laws protected the assets of newly married women from creditors in a world of virtually unlimited liability. We compare couples married after the passage of a marital property law with couples from the same state who were married before. Consistent with a simple model of household borrowing that trades off agency costs against risk sharing, the effect on investment was heterogeneous. It increased if most household property came from the husband and decreased if most came from the wife.

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Journal of Financial Economics
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Peter Koudijs
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Dutch-Caribbean plantations attracted substantial outside funding in the 1760s. This came to an abrupt end after the 1773 credit crisis. We use one banker’s detailed archives to analyze how bankers and investors were initially able to overcome asymmetric information problems, and why the system eventually broke down. Bankers oversaw plantations’ cash flows and placed debt with investors in the form of mortgage-backed securities. Strong growth led to lax screening and an oversupply of credit. After a fall in commodity prices, plantation debts were unsustainable. Restructurings were incomplete and debt overhang led to underinvestment and a drop in economic activity.

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Peter Koudijs
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Arvind Krishnamurthy
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PhD students awarded Arvind Krishnamurthy, the John S. Osterweis Professor of Finance, the PhD Faculty Distinguished Service Award during a virtual ceremony.

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Ran Abramitzky
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Professor of economics Ran Abramitzky has been named the new senior associate dean of the social sciences in the School of Humanities and Sciences. He will begin his term on September 1, 2020.

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The European Union has passed a stimulus plan of more than $850 billion dollars to bring its economy back on track after the coronavirus pandemic ushered in staggering unemployment rates.

The plan highlights unprecedented actions to bring financial stability to those within the EU that have been most affected.

For more, KCBS Radio was joined by Christophe Crombez, Political Economist and Senior Research Scholar at Stanford University.

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Christophe Crombez
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Jean C. Oi
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Industries all over the world are grappling with new protocols and adaptations needed to safely reopen amongst changes the COVID-19 pandemic has wrought on the global economy. Nowhere have these changes been more apparent than in China, the original epicenter of the pandemic. Now, China is one of the countries leading the way in reopening its national economy.

To explore how business leaders and entrepreneurs in China responded to the lockdown and how they’re planning for the future, the China Program conducted a survey in coordination with the Stanford Center at Peking University and Stanford Business School alumni Christopher Thomas and Xue (Xander) Wu. Though taken from a small sample, the results are one of the best samples to date of how businesses in China are responding to the uncertain geopolitical environment the pandemic and current U.S.-China relations are creating.

High-tech firms and firms with a digital presence or the ability to quickly adapt to a digital environment have faired the best, as might be expected. Less expected are the indications that many of the business leaders surveyed are planning for some degree of 'decoupling' or economic separation from U.S.-based suppliers and markets. Both the pandemic and fluctuating U.S.-China relations have made access to global technologies uncertain and both factors are accelerating desires to create localized supply chains. While the long-term implications of these findings are still unknown, the survey provides a valuable snapshot of the current economic landscape within China. 

Read an excerpt from the article below, and find the full article at The Diplomat. A Chinese language version is available on Caixin.

[Subscribe to our newsletters to always get the latest research from APARC.]


From, "After COVID-19: Rebooting Business in China"

China was the first country to experience the ravages of COVID-19, having lost 4,634 people to the pandemic with 83,565 confirmed cases to date. Draconian measures were used to bend the curve and essentially stop the spread of the disease, although reports indicate that recently new cases have emerged, including those stemming from a Beijing market. For the most part, however, China has loosened restrictions and re-opened large parts of its economy. Individuals scan government-mandated QR health codes with their smartphones, and daily life has been restored to some sense of normalcy with restaurants serving customers and retail shops open to shoppers.

In this pivotal and important time, with streams of foreign policy arguments and opinion pieces sharply analyzing current U.S.-China geopolitical tensions continuing to pour forth, we at the Stanford China Program wanted to take stock of how businesses and the overall economy are coping as China tries to reopen its businesses and reboot its economy. Toward this effort, we conducted a collaborative survey of 135 senior executives in China from May 13-26. The survey was designed to help us better comprehend the variation in how Chinese businesses are reopening as well as how Chinese business leaders are viewing their prospects for the future. The research findings, based on one of the largest surveys to date of senior executives in China, helped us explore the following types of questions: What kinds of businesses have done better and what kinds have done worse? What role has the government played in economic assistance and business reopening? And how do China’s business leaders view the deterioration in U.S.-China relations, the possibility of decoupling, and even future access to technology?


Read the full article at The Diplomat.

Watch the panel discussion on the survey led by Jean Oi, Christopher Thomas, and Xue (Xander) Wu with Alvin Shiqi Wang (王世琪), Xiang Wang (王翔), Simon Yang (杨士宁), and Zhiqiang (ZZ) Zhang (张志强).

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Fateful Decisions: Choices That Will Shape China’s Future – Book Launch Panel Discusses Critical Challenges Facing China’s Policymakers

Fateful Decisions: Choices That Will Shape China’s Future – Book Launch Panel Discusses Critical Challenges Facing China’s Policymakers
Shiran Shen (left) and Lizhi Liu (right)
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Former Doctoral Students Win Prestigious Dissertation Awards

Interdisciplinary environmental scholar Shiran Victoria Shen is the recipient of the Harold D. Lasswell Award and political economist Lizhi Liu is the recipient of the Ronald H. Coase Award in recognition of their outstanding doctoral dissertations.
Former Doctoral Students Win Prestigious Dissertation Awards
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Public Health Experts Gather Together to Reflect upon Public Health Collaborations with China Amidst COVID-19

Public Health Experts Gather Together to Reflect upon Public Health Collaborations with China Amidst COVID-19
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The survey reveals mixed progress in reopening different sectors of China's economy, but also shows that many business leaders in China are planning for some level of decoupling as access to global technology and supply chains remains uncertain.

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APARC is pleased to share that Stanford alumnae Shiran Victoria Shen and Lizhi Liu have won prestigious awards for best dissertation in their fields. Both Shen and Liu earned their doctoral degrees in Political Science in 2018 and worked with Jean Oi, director of the China Program at APARC, during their tenure as doctoral students.

Shen, who is currently an assistant professor at the University of Virginia, has won the 2020 Harold D. Lasswell Award for her dissertation The Political Pollution Cycle: An Inconvenient Truth and How To Break It. The award is given annually by the American Political Science Association for “the best doctoral dissertation in the field of public policy.” Using a wide array of data, techniques, and research designs, Shen’s work explains how environmental change influences and is shaped by politics and policy. It centers on the critical case of air pollution control policies and uses China as a natural experiment.

Liu, whose doctoral research focuses on the political economy of e-commerce in China, has won the 2020 Ronald H. Coase Best Dissertation Award from the Society for Institutional and Organizational Economics. Her study proposes that China has devised a novel solution, that is, institutional outsourcing, to the central question of how developing states build market-supporting institutions. She is currently an assistant professor in the McDonough School of Business and a faculty affiliate of the Department of Government at Georgetown University.

Congratulations, Shiran and Lizhi, on your excellent work and prestigious awards!

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Ninth Annual Korean Studies Writing Prize Awarded

Won-Gi Jung (BA '20) is awarded the ninth annual Writing Prize in Korean Studies for his paper, "The Making of Chinatown: Chinese migrants and the production of criminal space in 1920s Colonial Seoul."
Ninth Annual Korean Studies Writing Prize Awarded
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Asia Health Policy Program Alum Wins Rothman Epidemiology Prize

Dr. Young Kyung Do, an expert in health policy and management at the Seoul National University College of Healthy Policy and the inaugural postdoctoral fellow in Asia health policy at APARC, has been awarded the 2020 prize for his outstanding publication in the journal Epidemiology last year.
Asia Health Policy Program Alum Wins Rothman Epidemiology Prize
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Shiran Shen (left) and Lizhi Liu (right)
Shiran Shen (left) and Lizhi Liu (right).
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Interdisciplinary environmental scholar Shiran Victoria Shen is the recipient of the Harold D. Lasswell Award and political economist Lizhi Liu is the recipient of the Ronald H. Coase Award in recognition of their outstanding doctoral dissertations.

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Oksenberg-Rohlen Fellow
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Scot Marciel was the Oksenberg-Rohlen Fellow at the Freeman Spogli Institute for International Studies, affiliated with the Walter H. Shorenstein Asia-Pacific Research Center from 2022-2024. Previously, he was a 2020-22 Visiting Scholar and Visiting Practitioner Fellow on Southeast Asia at APARC.  A retired diplomat, Mr. Marciel served as U.S. Ambassador to Myanmar from March 2016 through May 2020, leading a mission of 500 employees during the difficult Rohingya crisis and a challenging time for both Myanmar’s democratic transition and the United States-Myanmar relationship.  Prior to serving in Myanmar, Ambassador Marciel served as Principal Deputy Assistant Secretary for East Asia and the Pacific at the State Department, where he oversaw U.S. relations with Southeast Asia.

From 2010 to 2013, Scot Marciel served as U.S. Ambassador to Indonesia, the world’s fourth most populous country.  He led a mission of some 1000 employees, expanding business ties, launching a new U.S.-Indonesia partnership, and rebuilding U.S.-Indonesian military-military relations.  Prior to that, he served concurrently as the first U.S. Ambassador for ASEAN Affairs and Deputy Assistant Secretary of State for Southeast Asia from 2007 to 2010.

Mr. Marciel is a career diplomat with 35 years of experience in Asia and around the world.  In addition to the assignments noted above, he has served at U.S. missions in Turkey, Hong Kong, Vietnam, Brazil and the Philippines.  At the State Department in Washington, he served as Director of the Office of Maritime Southeast Asia, Director of the Office of Mainland Southeast Asia, and Director of the Office of Southern European Affairs.  He also was Deputy Director of the Office of Monetary Affairs in the Bureau of Economic and Business Affairs.

Mr. Marciel earned an MA from the Fletcher School of Law and Diplomacy, and a BA in International Relations from the University of California at Davis.  He was born and raised in Fremont, California, and is married with two children.

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In a webinar dated June 8, 2020, American University in Cairo Scholar Amr Adly presented findings from his new book Cleft Capitalism: The Social Origins of Failed Market Making in Egypt (Stanford University Press, 2020). Egypt has undergone significant economic liberalization under the auspices of the International Monetary Fund, the World Bank, USAID, and the European Commission. Yet after more than four decades of economic reform, the Egyptian economy still fails to meet popular expectations for inclusive growth, better standards of living, and high-quality employment. While many analysts point to cronyism and corruption, this study finds the root causes of this stagnation in the underlying social and political conditions of economic development. It offers a new explanation for why market-based development can fail to meet expectations: small businesses in Egypt are not growing into medium and larger businesses. The practical outcome of this missing middle syndrome is the continuous erosion of the economic and social privileges once enjoyed by the middle classes and unionized labor, without creating enough winners from market making. This in turn set the stage for alienation, discontent, and, finally, revolt. With this book, Adly uncovers both an institutional explanation for Egypt's failed market making, and sheds light on the key factors of arrested economic development across the Global South.


 

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In a webinar dated, May 27, 2020, Ohio University Historian Ziad Abu-Rish analyzed the trajectory of Lebanon's Uprising and the impact of the Covid-19 crisis on the contemporary political scene. Abu-Rish examined the multiple crises manifesting in Lebanon today and their impact on the fate of the uprising that began in October 2019. While the currency, fiscal, and infrastructural crises were central to the making of Lebanon’s uprising, he argued, the novel strategic innovations that the protesters made were key to shaping its trajectory relative to past protests. More recently, the COVID-19 pandemic has both exacerbated existing dynamics while also providing respite to the government and some of the traditional political parties. To watch the recording of the talk, please click below.


 

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