The Black Market for Beijing License Plates

  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},
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… 


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