The State of Mental Health Among the Elderly Chinese



China introduced its stringent family planning policies from the early 1970s, known as the “Later, Longer, Fewer” policies, and followed it with the One-Child Policy from 1979. The number of children born to Chinese parents significantly decreased from 5.7 in late 1960s to 2.5 in 1988. In Chen and Fang (2019), we show that family planning policies have drastically different effects on elderly parents’ physical and mental well-beings. Whereas parents more exposed to the family planning policies consume more and enjoy slightly better physical health status, they report more severe depression symptoms. In this paper, we present a more complete picture of the difference in mental health among residents in rural and urban areas, between males and females, between different education groups, between those with one child and those with more than one children, and between widowed and non-widowed. We highlight the role of family support (from children and spouse) for the mental health status among the elderly Chinese.

Equilibrium Consequences of Corruption on Firms: Evidence from China’s Anti-Corruption Campaign


We use China’s recent anti-corruption campaign as a natural experiment to examine the (market expected) equilibrium consequences of (anti-)corruption. We argue that the announcement of inspections of provincial governments by the Central Commission for Discipline Inspection (CCDI) on May 17, 2013 represents a significant departure of past norms of anti-corruption campaigns, and thus serves a rare empirical opportunity to examine the equilibrium effects of anti-corruption campaigns for firms. We first present a conceptual framework to illustrate the channels through which anti-corruption actions can influence firms. Using an event study approach and May 17, 2013 as the event date, we find that, overall, the stock market responded positively to the announcement of strong anti-corruption actions. The announcement returns are significantly lower for luxury-goods producers, and SOES, large firms, or politically connected firms earn lower returns than private, small, or non-connected firms. We also find that existing local institutions play a crucial role in determining the announcement returns across firms. Moreover, a long-term difference-in-differences analysis shows that higher returns during the event window are associated with more subsequent entries of new firms and faster expansions of existing firms. Finally, we also provide direct evidence consistent with the endogenous grits effect.