This paper tests the effects of fertility on household structure and parental labor supply in rural China. To solve the endogeneity problem, we use a unique survey on households with twin children and a comparison group of non-twin households. The ordinary least squares estimates show a negative...

Sex ratios (males to females) rose markedly in China in the last two decades, and crime rates nearly doubled. This paper examines whether the two are causally linked. High sex ratios imply fewer married men, and marriage has been conjectured to be a socializing force. Our paper exploits the...

In a neoclassical growth model with public consumption, we show the following Pareto optimal tax rules. The government should tax leisure and private consumption at the same rate, and subsidize net investment at the same rate it taxes net capital income. Also, it should tax capital income more...