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Credit Rationing and Pass-Through in Supply Chains: Theory and Evidence from Bangladesh

By M. Shahe Emran, Dilip Mookherjee, Forhad Shilpi, and M. Helal Uddin

òòò½Íø Journal: Applied Economics, July 2021

Traders are often blamed for high prices, prompting government regulation. We study the effects of a government ban of a layer of financing intermediaries in edible oil supply chain in Bangladesh during 2011–2012. Contrary to the predictions of a standa...

Communication Infrastructure and Stabilizing Food Prices: Evidence from the Telegraph Network in China

By Pei Gao and Yu-Hsiang Lei

òòò½Íø Journal: Applied Economics, July 2021

This paper exploits a unique historical setting―the expansion of the telegraph network in nineteenth-century China when railroads were limited―to examine whether the reduction of information frictions stabilizes grain prices. Employing a difference-in...

Hometown Ties and the Quality of Government Monitoring: Evidence from Rotation of Chinese Auditors

By Jian Chu, Raymond Fisman, Songtao Tan, and Yongxiang Wang

òòò½Íø Journal: Applied Economics, July 2021

Audits are a standard mechanism for reducing corruption in government investments. The quality of audits themselves, however, may be affected by relationships between auditor and target. We study whether provincial chief auditors in China show greater l...