TY  - RPRT
        AU  - Chau, Nancy H.
AU  - Qin, Yu
AU  - Zhang, Weiwen
        TI  - Leader Networks and Transaction Costs: A Chinese Experiment in Interjurisdictional Contracting
        PY  - 2016/Jan/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 9641
        UR  - https://www.iza.org/index.php/publications/dp9641
        AB  - Do leader networks promote efficient intergovernmental contracts? We examine a groundbreaking policy in China where subprovincial governments freely traded land conversion quotas, and investigate the role of leader networks on the boundary between jurisdictions that embrace trade versus autarky. Consistent with the presence of Williamsonian transaction costs featuring uncertainty, incomplete contracting, and asset specificity, we find that leader career networks facilitate trade, controlling for institutional similarity and prior trade relations. However, trade gains can be limited if leader networks offer selective coverage. Using data from the Chinese experiment, we find evidence consistent with trade match distortions induced by leader networks.
        KW  - interjurisdictional contracting
KW  - government leader network
KW  - transaction cost
        ER  -