Wei, Shang-jin; Xu, Jianhuan; Yin, Ge; Zhang, Xiaobo - National Bureau of Economic Research - 2023
- can significantly affect the efficacy of industrial policy. We investigate this idea in the context of China's largest pro …-innovation industrial policy using a structural model. We find that the return to the subsidy program is -19.7\% (but would be 7.8\% if the …