How does domestic value-added tax (VAT) reform affect firms' export? We address this question via a model in which firms choose their sales for the domestic and foreign markets optimally. The model predicts that strengthening domestic tax enforcement has a negative effect on domestic sales but a...

We find that the 2013 Chinese anti-corruption campaign remarkably reduced charitable donations from listed companies with strong political connections, and lessened government subsidies to these companies, implying a reciprocal relationship between companies and the government prior to the...

How does a booming housing market crowd out credit access of firms and distort resource allocation in the real economy? This paper relies on a home purchase restriction (HPR) policy in Chinese cities as a natural experiment and shows that an exogenous reduction in housing demand and a halt on...