25 Years IWH

Professor Qizhou Xiong, PhD

Professor Qizhou Xiong, PhD
Current Position

since 11/15

Assistant Professor

Otto von Guericke University Magdeburg

since 8/15

Head of the Research Group Dynamic Discrete Choices of Individuals

Halle Institute for Economic Research (IWH) – Member of the Leibniz Association

Research Interests

  • household finance
  • dynamic discrete choice
  • empirical labour economics
  • financial market

Qizhou Xiong is Assistant Professor of Financial Economics at Otto von Guericke University Magdeburg since November 2015 and a member of the Department of Financial Markets at IWH since August 2015. His research focuses on applied microeconometrics, household finance, housing market, and labour economics.

Qizhou Xiong obtained an undergraduate degree from Peking University. He earned his master's degree and his PhD from Toulouse School of Economics. Before joining IWH, he was a teaching assistant at Toulouse School of Economics.

Your contact

Professor Qizhou Xiong, PhD
Professor Qizhou Xiong, PhD
Mitglied - Department Financial Markets
Send Message +49 345 7753-756 Personal page


Working Papers


The Liquidity Premium of Safe Assets: The Role of Government Debt Supply

Qizhou Xiong

in: IWH Discussion Papers, No. 11, 2017


The persistent premium of government debt attributes to two main reasons: absolute nominal safety and liquidity. This paper employs two types of measures of government debt supply to disentangle the safety and liquidity part of the premium. The empirical evidence shows that, after controlling for the opportunity cost of money, the quantitative impact of total government debt-to-GDP ratio is still significant and negative, which is consistent with the theoretical predictions of the CAPM with utility surplus of holding convenience assets. The relative availability measure, the ratio of total government liability to all sector total liability, separates the liquidity premium from the safety premium and has a negative impact too. Both theoretical and empirical results suggest that the substitutability between government debt and private safe assets dictates the quantitative impact of the government debt supply.

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College Choice and the Selection of Mechanisms: A Structural Empirical Analysis

J.-R. Carvalho T. Magnac Qizhou Xiong

in: IWH Discussion Papers, No. 3, 2016


We use rich microeconomic data on performance and choices of students at college entry to study the interaction between the revelation of college preferences through exams and the selection of allocation mechanisms. We propose a method in which preferences and expectations of students are identified from data on choices and multiple exam grades. Counterfactuals we consider balance costs arising from congestion and exam organization. Moving to deferred acceptance or inverting the timing of choices and exams are shown to increase welfare. Redistribution among students or schools is sizeable in all counterfactual experiments.

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Censored Fractional Response Model: Estimating Heterogeneous Relative Risk Aversion of European Households

Qizhou Xiong

in: IWH Discussion Papers, No. 11, 2015


This paper estimates relative risk aversion using the observed shares of risky assets and characteristics of households from the Household Finance and Consumption Survey of the European Central Bank. Given that the risky share is a fractional response variable belonging to [0, 1], this paper proposes a censored fractional response estimation method using extremal quantiles to approximate the censoring thresholds. Considering that participation in risky asset markets is costly, I estimate both the heterogeneous relative risk aversion and participation cost using a working sample that includes both risky asset holders and non-risky asset holders by treating the zero risky share as the result of heterogeneous self-censoring. Estimation results show lower participation costs and higher relative risk aversion than what was previously estimated. The estimated median relative risk aversions of eight European countries range from 4.6 to 13.6. However, the results are sensitive to households’ perception of the risky asset market return and volatility.

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