In the Covid-19 pandemic, individuals run on public medical resources, leading<br>to ineffi... more In the Covid-19 pandemic, individuals run on public medical resources, leading<br>to inefficient usage of these resources and a surging mortality rate. In this paper,<br>we construct a theoretical model to study the causes and consequences of hospital<br>runs during the pandemic, and explore the efficacy of various policy measures to<br>combat the pandemic. Our analysis demonstrates nuanced interacting effects<br>and complementarity among various pandemic containment policies. We find<br>that expanding tests harms social welfare when the virus spreads slowly and the<br>amount of hospital resources is limited. The optimal testing intensity depends on<br>the effectiveness of other policies.
We build a novel dynamic model of two-sided markets which can be used to explore both intertempor... more We build a novel dynamic model of two-sided markets which can be used to explore both intertemporal and cross-side pricing strategies of platform enterprise. This two-period model goes beyond the traditional two-sided market framework to examine the new intertemporal tradeoffs that a platform enterprise faces when formulating differentiating prices over time for different sides. With this dynamic framework, we analyze a new phenomenon of economic development, emerging "Digital Villages" in China, which obtain initial subsidies from e-commerce platform enterprises like Alibaba for their low-income dwellers as sellers. After these low-income sellers become more capable of running the online business through learning-by-doing, the e-commerce platform will charge them a higher fee. Recently, the economic growth of these "Digital Villages" has been phenomenal. Theoretical results based on our dynamic model indicate, if third-degree price discrimination between new and old online sellers in period 2 is allowed, the platform will charge sellers a lower fee in period 1 compared with the later period. Furthermore, when the cross-side network externality of each online seller is stronger than that of each online buyer or the learning-by-doing benefit each online seller obtains is high enough, the platform will provide subsidies for sellers in the first period. Moreover, some dynamic pricing strategies will change if this price discrimination on sellers is prohibited. Finally, we examine the effects of the price regulation on the member fees to heterogeneous groups as well as social welfare regarding the two-sided markets behind the "Digital Villages" within this new theoretical framework.
... 11 Yener Altunbas, Leonardo Gambacorta and David Marques-Ibanez, 'Does Monetary Policy A... more ... 11 Yener Altunbas, Leonardo Gambacorta and David Marques-Ibanez, 'Does Monetary Policy Affect Bank Risk-taking?', BIS ... 14 Olivier Blanchard, Giovanni dell'Ariccia and Paolo Mauro, 'Rethinking Macroeconomic Policy', IMF Staff Position Note, SPN/10/03, 12 February ...
In the Covid-19 pandemic, individuals run on public medical resources, leading<br>to ineffi... more In the Covid-19 pandemic, individuals run on public medical resources, leading<br>to inefficient usage of these resources and a surging mortality rate. In this paper,<br>we construct a theoretical model to study the causes and consequences of hospital<br>runs during the pandemic, and explore the efficacy of various policy measures to<br>combat the pandemic. Our analysis demonstrates nuanced interacting effects<br>and complementarity among various pandemic containment policies. We find<br>that expanding tests harms social welfare when the virus spreads slowly and the<br>amount of hospital resources is limited. The optimal testing intensity depends on<br>the effectiveness of other policies.
We build a novel dynamic model of two-sided markets which can be used to explore both intertempor... more We build a novel dynamic model of two-sided markets which can be used to explore both intertemporal and cross-side pricing strategies of platform enterprise. This two-period model goes beyond the traditional two-sided market framework to examine the new intertemporal tradeoffs that a platform enterprise faces when formulating differentiating prices over time for different sides. With this dynamic framework, we analyze a new phenomenon of economic development, emerging "Digital Villages" in China, which obtain initial subsidies from e-commerce platform enterprises like Alibaba for their low-income dwellers as sellers. After these low-income sellers become more capable of running the online business through learning-by-doing, the e-commerce platform will charge them a higher fee. Recently, the economic growth of these "Digital Villages" has been phenomenal. Theoretical results based on our dynamic model indicate, if third-degree price discrimination between new and old online sellers in period 2 is allowed, the platform will charge sellers a lower fee in period 1 compared with the later period. Furthermore, when the cross-side network externality of each online seller is stronger than that of each online buyer or the learning-by-doing benefit each online seller obtains is high enough, the platform will provide subsidies for sellers in the first period. Moreover, some dynamic pricing strategies will change if this price discrimination on sellers is prohibited. Finally, we examine the effects of the price regulation on the member fees to heterogeneous groups as well as social welfare regarding the two-sided markets behind the "Digital Villages" within this new theoretical framework.
... 11 Yener Altunbas, Leonardo Gambacorta and David Marques-Ibanez, 'Does Monetary Policy A... more ... 11 Yener Altunbas, Leonardo Gambacorta and David Marques-Ibanez, 'Does Monetary Policy Affect Bank Risk-taking?', BIS ... 14 Olivier Blanchard, Giovanni dell'Ariccia and Paolo Mauro, 'Rethinking Macroeconomic Policy', IMF Staff Position Note, SPN/10/03, 12 February ...
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Papers by Daniel Xie