• College Admission in Three Chinese Provinces: Boston Mechanism vs. Deferred Acceptance Mechanism (job market paper)

Full paper: here

Abstract: In college admissions in China, the Boston mechanism (BM) was replaced by the deferred acceptance mechanism (DA). In this paper, I compare the empirical performance of these two mechanisms in the Chinese context. To do so, I develop an empirical model and apply it to college admissions in the provinces of Guangxi, Hebei, and Sichuan. Then, I conduct counterfactuals to empirically compare BM and DA in these three provinces for given years. I find that not only is BM superior to DA in terms of total welfare, but also that most students receive lower utility after the switch from BM to DA.


  • College Admission in Three Chinese Provinces: Province-Specific versus Pooling Quotas

Full paper: here

Abstract: Regarding college admissions in China, each college has a quota for each province. Under this province-specific quota system, students in different provinces do not compete with each other and are not differentiated after admission. As opposed to the pooling quota system, where each college has a quota for multiple provinces, the province-specific quota system may introduce unfairness and inefficiency. In this paper, I develop a model based on Pu (2018) to empirically compare the two systems in Guangxi, Hebei, and Sichuan in 2006 and 2007. I find that pooling quotas improve students' welfare and so does combining quotas for more provinces. However, students in some provinces have lower utility after pooling the quotas. Since students are treated equally after pooling, the results indicate the unfairness of the province-specific quota system. All results indicate the government should abandon the province-specific quota system.


  • Where Are the Fundamental Traders? A Model Application Based on the Shanghai Stock Exchange (with Carl Zulauf)

Full paper: here

Abstract: This study constructs a model to disaggregate traders into categories based on their strategic approach (fundamental versus technical) and perception of future price trends. Testing the model with data from the Shanghai Stock Exchange (SSE), it finds a minimal presence of fundamental traders. However, the model estimation reveals that the SSE is weak-form efficient as technical traders apparently do not earn abnormal profits.



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