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The dilemma of public information disclosures

Author

Listed:
  • Shi, Xiangyu
  • Gong, Jiaowei
  • Zhang, Xin
  • Wang, Chang

Abstract

In this paper, we document a novel fact that disclosures of public information reshape social dynamics in China. Using the staggered roll-out of a quasi-natural experiment of air pollution information disclosure and a novel high-frequency data set of social and public events, we find socioeconomic cooperation and protests both significantly decrease after disclosure. The negative effects are larger when the disclosed pollution level is higher and when residents have higher environmental awareness and lower trust in local governments. Our results are rationalized in a theoretical model and suggest that information disclosure involves a tradeoff between economic efficiency and political stability and leads to a dilemma for policymakers.

Suggested Citation

  • Shi, Xiangyu & Gong, Jiaowei & Zhang, Xin & Wang, Chang, 2024. "The dilemma of public information disclosures," MPRA Paper 121357, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:121357
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    File URL: https://mpra.ub.uni-muenchen.de/121357/1/MPRA_paper_121357.pdf
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    More about this item

    Keywords

    Air pollution; Information; Social dynamics; Public events; Socioeconomic cooperation; Protests; China;
    All these keywords.

    JEL classification:

    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • D9 - Microeconomics - - Micro-Based Behavioral Economics
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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