This study investigates the effects of financial deepening on innovation efficiency for various democratic levels of political institutions using panel data from 69 countries spanning 1970-2010. Banking market deepening is associated with increased innovation efficiency only when political...

We analyze the causal impact of the industrial policy structure on the formation of zombie firms, using a rich data set of manufacturing firms in China between 1998 and 2007. We find that selective industrial policy schemes increase zombie shares in skill intensive sectors, because as subsidized...

Severe air quality hurts human capital, posing threats to innovative outcomes. Using unique data containing 12.8 million patent applications and associated citations in China, this paper examines the causal impact of the concentrations of particulate matter with a diameter of 2.5 μm or less...

Although achieving impressive economic growth during the economic reform period, China has been plagued by rampant corruption and a widening income gap. How can the coexistence these two phenomena be explained? In this paper, we argue that before 1994, the coexistence was induced by a series of...

This paper extends the Ackerberg–Caves–Frazer approach to a nonparametric aggregate production function to address both the endogeneity and the function misspecification issues in estimating the returns to infrastructure and private capital and thus the optimal allocation between them. Based...