Since the Tax Sharing Reform in 1994, the local government revenue of the People's Republic of China (PRC) has faced downward risk problems. This paper reviews the fiscal and taxation reforms in the central and local governments of the PRC and focuses on evaluating the effectiveness of fiscal...

This paper studies human-capital spillovers and its persistence by exploiting a unique event in modern China

This paper estimates the effects of the send-down movement during the Cultural Revolution---when about 16 million urban youth were mandated to resettle in the countryside---on rural education. Using a county-level dataset compiled from local gazetteers and population censuses, we show that...

This paper studies the role of observational learning in search markets where buyers do not take the list price as a take-it-or-leave-it offer. Using a unique data from the Beijing housing market, we estimate a structural model in which buyers infer a seller’s reservation value from the...

Gong et al. (2021) made additional challenges to our original paper (Chen et al., 2020A) after we made a detailed reply in Chen et al. (2021) to Gong et al. (2020). In this further reply, we use data-based evidence to demonstrate how Gong et al. (2021) misread or/and misinterpreted our paper and...

We evaluate the effects of a Chinese accelerated depreciation policy that occurred in 2014 on firm investment. We present three findings. First, on average, the policy increased firms' investment in eligible capital, especially the purchase of equipment and machines. Second, the policy effects...