IDEAS home Printed from https://ideas.repec.org/a/eee/reveco/v102y2025ics1059056025002916.html
   My bibliography  Save this article

Price distortion on market resource allocation efficiency: A DID analysis based on national-level big data comprehensive pilot zones

Author

Listed:
  • Song, Weijiang
  • Zhao, Mengyang
  • Yu, Juan

Abstract

This study employs panel data from 284 cities in China from 2014 to 2020 and applies a two-way fixed effects model. The results confirm that price distortion significantly hinder the efficiency of resource allocation. A difference-in-differences (DID) analysis of the implementation of national big data comprehensive experimental zones reveals that the establishment of these zones effectively mitigated the inefficiencies in resource allocation caused by price distortion. Furthermore, heterogeneity analysis shows that the role of the price mechanism in improving resource allocation efficiency is particularly pronounced in central and eastern regions. Further analysis finds that price distortion primarily lead to inefficiencies through government intervention, market monopolies, and information asymmetry. Meanwhile, technological support help reduce the marginal effects of resource misallocation. Which highlights the role of policy interventions and technological innovation in correcting market failures and enhancing economic efficiency, providing empirical support for relevant policy making.

Suggested Citation

  • Song, Weijiang & Zhao, Mengyang & Yu, Juan, 2025. "Price distortion on market resource allocation efficiency: A DID analysis based on national-level big data comprehensive pilot zones," International Review of Economics & Finance, Elsevier, vol. 102(C).
    • Handle: RePEc:eee:reveco:v:102:y:2025:i:c:s1059056025002916
    DOI: 10.1016/j.iref.2025.104128
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1059056025002916
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.iref.2025.104128?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:reveco:v:102:y:2025:i:c:s1059056025002916. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620165 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.