Jialu Streeter

We analyze data from a survey we administered during the COVID19 pandemic to investigate the relationship between people's subjective beliefs about risks and their private protective behaviors. On average, people substantially overestimate the absolute level of risk associated with economic activity, but have directionally correct signals about their relative risk based on their demographic characteristics. Subjective risk beliefs are predictive of changes in economic activities independently… Show more

We analyze data from a survey we administered during the COVID19 pandemic to investigate the relationship between people's subjective beliefs about risks and their private protective behaviors. On average, people substantially overestimate the absolute level of risk associated with economic activity, but have directionally correct signals about their relative risk based on their demographic characteristics. Subjective risk beliefs are predictive of changes in economic activities independently of government policies. Government mandates restricting economic behavior, in turn, attenuate the relationship between subjective risk beliefs and protective behaviors. Show less

Key Takeaways

Tax policies affect economic decision-making on work, savings, inter-state migration, investment, and business organization.
Major tax reforms since the 1980s aimed at reducing distortion, incentivizing work, simplifying the tax codes, closing loopholes, and enhancing the global competitiveness of American corporations.
The effectiveness of tax reforms depends on the overall economy and may not always conform with economic model predictions.
The… Show more

Key Takeaways

Tax policies affect economic decision-making on work, savings, inter-state migration, investment, and business organization.
Major tax reforms since the 1980s aimed at reducing distortion, incentivizing work, simplifying the tax codes, closing loopholes, and enhancing the global competitiveness of American corporations.
The effectiveness of tax reforms depends on the overall economy and may not always conform with economic model predictions.
The efficacies and unintended consequences of tax reforms must be evaluated in both the short run and long run. Show less

Key Takeaways

California’s homeless crisis is associated with high housing costs, inadequate shelter spaces, deinstitutionalization, and changes in the criminal justice system.

To improve housing affordability, California needs to streamline and accelerate housing production and reexamine the regulations that have hindered new housing development.

To reduce the unsheltered homeless population, more shelter capacity and increased investment in cost-effective… Show more

Key Takeaways

California’s homeless crisis is associated with high housing costs, inadequate shelter spaces, deinstitutionalization, and changes in the criminal justice system.

To improve housing affordability, California needs to streamline and accelerate housing production and reexamine the regulations that have hindered new housing development.

To reduce the unsheltered homeless population, more shelter capacity and increased investment in cost-effective housing are needed.

A large share of the chronically homeless suffers from drug addiction and mental health problems. More treatment facilities and lower barriers for treatment are needed. Show less

We analyze data from a survey we administered during the COVID-19 pandemic to investigate the relationship between people's subjective risk beliefs and their protective behaviors. We report three main findings. First, on average, people substantially overestimate the absolute level of risk associated with economic activity, but have correct signals about their relative risk. Second, people who believe that they face a higher risk of infection are more likely to report avoiding economic… Show more

We analyze data from a survey we administered during the COVID-19 pandemic to investigate the relationship between people's subjective risk beliefs and their protective behaviors. We report three main findings. First, on average, people substantially overestimate the absolute level of risk associated with economic activity, but have correct signals about their relative risk. Second, people who believe that they face a higher risk of infection are more likely to report avoiding economic activities. Third, government mandates restricting economic behavior attenuate the relationship between subjective risk beliefs and protective behaviors. Show less

Wealth varies considerably across the population and changes significantly over the lifecycle. In this paper, we trace out trajectories of wealth across several key life milestones, including marriage, homeownership, childbirth, divorce, disability, health shocks, retirement and widowhood using multiple decades of longitudinal panel data. We estimate both changes over the ten-year period before and after each milestone and assess whether those changes occur gradually or sharply after the… Show more

Wealth varies considerably across the population and changes significantly over the lifecycle. In this paper, we trace out trajectories of wealth across several key life milestones, including marriage, homeownership, childbirth, divorce, disability, health shocks, retirement and widowhood using multiple decades of longitudinal panel data. We estimate both changes over the ten-year period before and after each milestone and assess whether those changes occur gradually or sharply after the milestone. We find evidence of significant long-run increases in wealth associated with homeownership and retirement, and significant long-run reductions in wealth associated with divorce, health shocks, and disability. In general, these changes appear to occur gradually rather than immediately after the milestone. Our results also indicate a large degree of heterogeneity across demographics, socioeconomic status and risk protection from insurance. In particular, those with lower levels of socioeconomic status and those without access to risk protection experience smaller wealth gains (or larger wealth losses) following life-course transitions. These results identify populations and life stages where individuals are most vulnerable to large reductions in wealth. Show less

The vast majority of studies of the widowed have concentrated on women. Less is known about whether differences in financial and emotional wellbeing after bereavement vary systematically with the gender of the surviving spouse. This paper analyzes the consequences of widowhood on the economic resources and emotional and mental stability of men and women in the United States. Data are from the 1992–2016 waves of the Health and Retirement Study (HRS). A panel fixed-effect model is adopted to… Show more

The vast majority of studies of the widowed have concentrated on women. Less is known about whether differences in financial and emotional wellbeing after bereavement vary systematically with the gender of the surviving spouse. This paper analyzes the consequences of widowhood on the economic resources and emotional and mental stability of men and women in the United States. Data are from the 1992–2016 waves of the Health and Retirement Study (HRS). A panel fixed-effect model is adopted to estimate the impact of widowhood on household size-adjusted income, family wealth, affects, and somatic symptoms.

The results show that though both men and women are negatively impacted by widowhood, the areas of impact vary across gender. Women's financial security and men's mental health deteriorate as a direct result of spousal losses. Women experience a 22% income reduction and a 10% wealth loss in the first two years after losing a spouse. In subsequent years, widows continue to decumulate wealth to supplement income. In contrast, men's financial conditions stay relatively stable, but their emotional and mental health conditions worsen sharply in widowhood due to rising rates of loneliness, depression, and sadness. The results bear strong policy implications for retirement planning, survivor benefits, financial education, and public awareness of the psychological wellbeing of widowed individuals. Show less

How can more Americans from all walks of life live better and longer? What steps can we take collectively to help mitigate looming costs and realize the full potential of an aging society?

To help answer these questions, the Stanford Center on Longevity (SCL) initiated the Sightlines Project. The project identifies action steps that individuals can take to live long and live well, and measures the prevalence of Americans who are taking these steps. The goal of the project is to provide… Show more

How can more Americans from all walks of life live better and longer? What steps can we take collectively to help mitigate looming costs and realize the full potential of an aging society?

To help answer these questions, the Stanford Center on Longevity (SCL) initiated the Sightlines Project. The project identifies action steps that individuals can take to live long and live well, and measures the prevalence of Americans who are taking these steps. The goal of the project is to provide insight, stimulate
conversation, motivate further research and generate ideas that promote wellness for all Americans in this age of human longevity. Show less

We construct a two-sector (agriculture and modern) overlapping generations growth model calibrated to India to study the effects of sectoral tax rates, sectoral infrastructure investments, and labor market frictions on potential growth in India. Our model is motivated by the idea that because misallocation depends on distortions, policies that reduce distortions raise potential growth. We show that the positive effect of a variety of policy reforms on potential growth depends on the extent to… Show more

We construct a two-sector (agriculture and modern) overlapping generations growth model calibrated to India to study the effects of sectoral tax rates, sectoral infrastructure investments, and labor market frictions on potential growth in India. Our model is motivated by the idea that because misallocation depends on distortions, policies that reduce distortions raise potential growth. We show that the positive effect of a variety of policy reforms on potential growth depends on the extent to which public and private capital are complements or substitutes. We also show that funding more infrastructure investments in both sectors by raising labor income taxes in the agriculture sector raises potential growth. Show less

Using data on coal-fired electric power plants, this article investigates the contributing factors affecting the investment decisions on flue-gas desulfurization (FGD), a capital-intensive emission control technology. The paper makes two contributions to the literature. First, our results show that the public regulatory status of electric power plants has a strong influence on whether FGD investment is made. Compared to deregulated power plants, those that are still under rate-of-return… Show more

Using data on coal-fired electric power plants, this article investigates the contributing factors affecting the investment decisions on flue-gas desulfurization (FGD), a capital-intensive emission control technology. The paper makes two contributions to the literature. First, our results show that the public regulatory status of electric power plants has a strong influence on whether FGD investment is made. Compared to deregulated power plants, those that are still under rate-of-return regulations by Public Utility Commissions are more likely to install FGD. Second, a higher rate of inspections of polluting facilities (not just electric utility power plants) in a state in the previous year is associated with a higher probability of power plants adopting FGD this year. In addition, sulfur content of coal and plant size are both positively associated with the likelihood of FGD installation. The service length of boilers is negatively associated with the likelihood. Show less

This article studies the impact of health insurance on individual out-of-pocket health expenditures in China. Using China Health and Nutrition Survey data between 1991 and 2006, we apply two-part and sample selection models to address issues caused by censored data and selection on unobservables. We find that, although the probability of accessing health care increases with the availability of health insurance, the level of out-of-pocket health expenditure decreases. Our results from a… Show more

This article studies the impact of health insurance on individual out-of-pocket health expenditures in China. Using China Health and Nutrition Survey data between 1991 and 2006, we apply two-part and sample selection models to address issues caused by censored data and selection on unobservables. We find that, although the probability of accessing health care increases with the availability of health insurance, the level of out-of-pocket health expenditure decreases. Our results from a selection model with instrumental variables suggest that having health insurance reduces the expected out-of-pocket health expenditure of an individual by 29.42% unconditionally. Meanwhile, conditional on being subjected to positive health expenditure, health insurance helps reduce out-of-pocket spending by 44.38%. This beneficial effect of health insurance weakens over time, which may be attributable to increases in the coinsurance rates of health insurances in China. Show less

China became a major player in renewable energy (RE) technology during the 2000s. Chinese solar PV cell and module makers quickly dominated global sales in that industry, while the country's wind turbine producers became poised for significant exports after capturing their rapidly growing home market. In countries like the US, Chinese RE technology strength has been met with claims of excessive governmental support of exports. This study examines to what extent Chinese firms' solar PV and wind… Show more

China became a major player in renewable energy (RE) technology during the 2000s. Chinese solar PV cell and module makers quickly dominated global sales in that industry, while the country's wind turbine producers became poised for significant exports after capturing their rapidly growing home market. In countries like the US, Chinese RE technology strength has been met with claims of excessive governmental support of exports. This study examines to what extent Chinese firms' solar PV and wind technology successes have been enabled by policy supports, and whether those policies appear to have been driven by broader goals versus RE export promotion per se. The evidence suggests that governmental policy toward both wind and solar originated in a push for export-competitive Chinese companies. But the specifics differed substantially due to the particular requirements of building technological capabilities in each: export readiness necessitated substantial support for domestic installation of wind but not solar PV power. The findings also suggest that as the decade of the 2000s progressed, environmental goals played an increasing role alongside export promotion in motivating and shaping Chinese RE technology policies. Show less

Many countries have experienced, or are experiencing, urbanization. One such example is China. Even though the large‐scale rural‐urban migration seems chaotic on the surface, there are certain underlying forces driving individual decisions. The purpose of this paper is to provide some understanding of the relationship between human capital, migration, and occupational choices. The paper starts with an overlapping generations model. Human capital plays various roles across different occupations… Show more

Many countries have experienced, or are experiencing, urbanization. One such example is China. Even though the large‐scale rural‐urban migration seems chaotic on the surface, there are certain underlying forces driving individual decisions. The purpose of this paper is to provide some understanding of the relationship between human capital, migration, and occupational choices. The paper starts with an overlapping generations model. Human capital plays various roles across different occupations – it does not affect the income of farmers, it affects income of workers linearly, and it has increasing returns in rural non‐farm business. The paper then derives income profiles for individuals with heterogeneous human capital, and finds the human capital thresholds of occupations. The paper calibrates the model to China, and simulates the model to answer two questions: how does an improving human capital distribution affect rural wages, quantities of migrants and return migrants? How does a fast‐growing urban wage rate affect rural wages, quantities of migrants and return migrants?
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