Covid-19 Public Health and Public Policy Virtual Forum

First Edition

Organized by School of Management and Economics, CUHK-Shenzhen


School of Entrepreneurship and Management, ShanghaiTech University

Hosted by VoxChina

Date: April 11, 2020, Saturday

9-11am, US EST

9-11pm, Beijing Time

2-4pm, London GMT

Time: 2 Hours

Space is limited, pre-registration is required.
Please register here to receive an e-mail with a Zoom link to attend the presentation.

Tax Policy and Lumpy Investment Behavior: Evidence from China’s VAT Reform Zhao Chen, Xian Jiang, Zhikuo Liu, Juan Carlos Suárez Serrato, Daniel Yi Xu, Apr 01, 2020
Tax Policy and Lumpy Investment Behavior: Evidence from China’s VAT Reform Zhao Chen, Xian Jiang, Zhikuo Liu, Juan Carlos Suárez Serrato, Daniel Yi Xu, Apr 01, 2020 To stimulate investment and promote production efficiency, the Chinese government has undertaken a series of value-added tax (VAT) reforms. One of those reforms, in 2009, reduced not only the purchasing price of equipment, but also investment frictions, i.e., the price gap imposed by the pre-reform VAT system between new and used equipment. We find that this reform increased equipment investment by 36% and, more importantly, the increase was driven by investment spikes (i.e., investment greater than 20% of capital stock). Using a dynamic investment model, we find that tax policies that directly reduce investment frictions, such as investment tax credits, are more effective in stimulating investment than policies such as corporate income tax cuts or bonus depreciation.
Production Networks and Firm Value: Evidence from the US-China Trade War Yi Huang, Chen Lin, Sibo Liu, Heiwai Tang, Mar 25, 2020 This paper discusses the effects on the financial markets of the several rounds of tariff hikes during the 2018–19 US-China trade war. It illustrates that US firms that are more dependent on exports to and imports from China have lower stock prices around the announcement date, while the expectation of weakened Chinese import competition due to US tariffs plays an economically minimal role. Firms with indirect exposure to US-China trade through domestic supply chains also...
Relocating or Redefined: A New Perspective on Urbanization in China Li Gan, Qing He, Ruichao Si, Daichun Yi, Mar 18, 2020 We study the urbanization process in China during the past decade by deconstructing different sources of new urban residents. We find that around one-third of urban population growth in the past decade has consisted of redefined migrants from communities that have been reclassified from rural to urban, though they do not actually move. We further find evidence that failing to consider the number of redefined migrants and their housing behaviors leads to a high housing vacancy rate in China’s urban areas.
Improving State Effectiveness by Discouraging Civil Servants from Flattering Their Leaders Alain de Janvry, Guojun He, Elisabeth Sadoulet, Shaoda Wang, Qiong Zhang, Mar 11, 2020 Evaluation of public employees performance is essential to induce higher work efforts. We use an experiment in two provinces of china to explore how to design such evaluation. Results show that the incentive effect of evaluation can be larger if the employee does not know ex-ante who the evaluator will be, thus reducing attempts at personally influencing the evaluator and enhancing instead job achievements.