China reformed value-added tax (VAT) by removing investment from the tax base in northeastern provinces in 2004, which is a “natural experiment” of its tax system. Using difference-in-differences method, this paper for the first time investigates the impact of VAT reform on China firms’...

Between domestic financial institutions and foreign or joint venture ones in China, which ones do Chinese people give better assessment to? And what factors affect those comparative assessments? With a household survey in nine cities in China in 2006, we find that China¡¯s domestic financial...