The Black Market for Beijing License Plates

@article{Daljord2019TheBM,
  title={The Black Market for Beijing License Plates},
  author={{\O}ystein Daljord and Mandy Hu and Guillaume Pouliot and Junji Xiao},
  journal={Chicago Booth Research Paper Series},
  year={2019}
}
Black markets can reduce the effects of distortionary regulations by reallocating scarce resources towards those who value them the most. The illegal nature of black markets however creates transaction costs that reduce the gains from trade. We take a partial identification approach to infer gains from trade and transaction costs in the black market for Beijing car license plates which emerged following their recent rationing. We use optimal transport methods to non-parametrically estimate a… 

References

SHOWING 1-10 OF 70 REFERENCES
Better Lucky Than Rich? Welfare Analysis of Automobile License Allocations in Beijing and Shanghai
Economists often favour market-based mechanisms over non-market based mechanisms to allocate scarce public resources on grounds of economic efficiency and revenue generation. When the usage of the
Market equilibrium and welfare effects of a fuel tax in China: The impact of consumers' response through driving patterns
Abstract We investigate the market equilibrium and welfare effects of a fuel tax in China relative to an alternative policy instrument that rations the number of new automobile sales through
Resale and Rent-Seeking: An Application to Ticket Markets*
We estimate an equilibrium model of ticket resale in which consumers' and brokers' decisions in the primary market reflect rational expectations about the resale market. Estimation is based on a
Efficient black markets
Abstract This paper investigates analytically the welfare effects of black-market activities that firms undertake to evade taxes. The desirability of a black market is linked to the attributes of the
The influence of black markets on a queue-rationed centrally planned economy
Abstract In centrally planned economies in which prices are fixed, and the rationing mechanism is waiting line queues, we show that an equilibrium of waiting times exists. We then introduce a “black
Primary-market auctions for event tickets: eliminating the rents of "Bob the broker"
Economists have long been puzzled by event-ticket underpricing: underpricing reduces revenue for the performer, and encourages socially wasteful rent-seeking by ticket brokers. Why not use an auction
New Estimates for the Shadow Economies all over the World
This paper presents estimations of the shadow economies for 162 countries, including developing, Eastern European, Central Asian, and high income OECD countries over 1999 to 2006/2007. According to
Quality Change Under Trade Restraints in Japanese Autos
In this paper we investigate the quality change in Japanese car and truck imports over 1979–1985. Car imports have been subject to a quota restraint since April 1981, while compact trucks have faced
Staple food control and industrial development in postwar Japan, 1950-1957: The role of the black market
Abstract Japanese rice policy in the early postwar period consisted of a compulsory delivery and rationing system designed to transfer economic surplus from farmers to urban workers to relieve upward
Auction–Lottery Hybrid Mechanisms: Structural Model and Empirical Analysis
This article studies an auction–lottery hybrid mechanism that is widely adopted in allocating new vehicle licenses in China. We characterize individuals' entry and bidding strategies in a symmetric
...
1
2
3
4
5
...