Using nationwide survey data collected in China in 2005, we reexamine findings reported by Tsai (2007) on governmental informal accountability at the local level. Our analysis indicates informal governmental accountability, as a form of informal institution, serves as an important link between...

This paper explores how financial frictions and financial shocks can contribute to jobless recoveries. We incorporate financial frictions and financial shocks into a real business cycle model in which firms determine not only their investment in capital and employment of workers, but also...

How can venture capital (VC) firms transform a weak innovation ecosystem into a productive and robust one? While the literature has found VC firms' catalyst role in innovation in developed markets, we know little about whether and how they affect innovation in an emerging market, where formal...