His broad research field is empirical microeconomics that integrates economic theory with empirical evidence by using rigorous econometric analysis to study policy relevant questions. In particular, his research covers a wide range of topics, including empirical IO, inequality, education, and human development. 

Zhao received his Ph.D. in Economics from Texas A&M University in 2018 and his B.Eng. in Electronic and Information Engineering from Shenzhen University in 2006.

Abstract:

This paper studies A+B (cost-plus-time) procurement contracting with time incentives in the highway construction industry. In the presence of construction uncertainty, the contractor’s actual completion time may deviate from the bid completion time, and the A+B contract design is not ex post efficient. Using data from highway procurement in California, we show through a counterfactual analysis that ex post efficient lane rental contract would reduce the social cost by $41.05 million (42.76%) on average. In particular, the average commuter cost would decrease by $61.22 million (77.89%), suggesting a substantial reduction in the construction externality to commuters from lane rental contracts.