In the past two decades, China has experienced a series of regulatory reforms in its electricity industry, aimed at improving power production efficiency. The central planning system was broken up and the market-oriented modern enterprise system was established. Furthermore, the former...

Political institutions are important factors influencing the supply of public goods. This study matches the organizational forms of political power in prefectural cities with data on implicit governmental debts, to examine the effect of political incentives on the size and risk of these debts....

We investigate the effect of a public information service program in taxation on firms’ effective corporate income tax rate (ECITR), taking advantage of a tax hotline program that lowers the cost of access to tax information. Using Chinese firm-level administrative data and exploiting a...

Standard estimates of risk premiums in traditional linear asset pricing models are subject to bias, primarily because of the omission of certain factors. The three-pass method is a promising approach that has been proposed to estimate the risk premium of observable factors. This method remains...

The existing literature ignores the effects of potential foreign entry on domestic banks in the process of financial liberalization. Empirical investigation of these effects is rare in practice due to the difficulties in observation and identification. Upon accession to the WTO, the China...

When the selected parametric model for the covariance structure is far from the true one, the corresponding covariance estimator could have considerable bias. To balance the variability and bias of the covariance estimator, we employ a nonparametric method. In addition, as different mean...