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Technology and the Political Agency Problem in Combating Water Pollution: A Regression Discontinuity Design

Office of Alumni and External Relations    2021-10-13

Subject: Technology and the Political Agency Problem in Combating Water Pollution: A Regression Discontinuity Design

Guest: Jialu Liu, PhD candidate, Chinese University of Hong Kong

Host: Xuan Wei, Assistant Professor, Antai

Time: Tuesday, Oct 19, 2021,  14:00-15:30

Venue: Tecent Meeting (Please send email to finance@acem.sjtu.edu.cn for meeting number and password)


Abstract:

Exploiting the spatial discontinuity in monitoring water pollution generated by upstream and downstream firms, we examine whether technology can reduce the political agency problem of corruption between firms and regional government officials. We find that technology alone is not effective in reducing corruption between firms and regional officials. However, corruption is significantly reduced when technology is complemented by an organizational change implemented by the central government. Further analyses show that the reduction in corruption is significantly larger in locations where local officials have stronger political promotion incentives. Our findings demonstrate, in the setting of combating water pollution, that to mitigate the political agency problem, policymakers should introduce the right organizational change to complement new technologies.

Bio:

Jialu Liu is a PhD candidate in Decision Sciences and Managerial Economics at Business School of the Chinese University of Hong Kong. Her research focuses on the economic impact of online platforms and technology, the drivers of user behaviors in online communities, as well as the risks in fintech platforms. One of her research papers has received the 2020 WISE Best Paper Award. Jialu received her bachelor’s degree from the Chinese University of Hong Kong.

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