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The Impact of Corporate Taxes on Firm Innovation: Evidence from the Corporate Tax Collection Reform in China

Jing Cai, Yuyu Chen, Xuan Wang, Dec 19, 2018

We explore a tax reform on manufacturing firms in China in order to study the impact of taxes on firm innovation. The reform switched corporate income tax collection from a local to state tax bureau and reduced the effective tax rate by 10 percent. The reform only applied to firms established after January 2002, allowing us to use a regression...

In-Consumption Social Listening with Moment-to-Moment Unstructured Data

Qiang Zhang, Wenbo Wang, Yuxin Chen, Jan 03, 2019

Major video and live streaming platforms in China have recently introduced a live commenting feature that allows viewers to post comments in real time during video content consumption. Building on the rich live comment data, this research proposes a novel approach for in-consumption social listening to extract live consumption experience. The approach is demonstrated in the context of online movie watching...

Market Expanding or Market Stealing? Competition with Network Effects in Bike-Sharing

Guangyu Cao, Ginger Zhe Jin, Xi Weng, Li-An Zhou, Jan 16, 2019

Positive network effects may lead to winner-takes-all in some markets. The column analyses dockless bike-sharing in China to show instead how an incumbent can benefit from positive spillovers from a competitor’s entry. In the case of bike-sharing, consumers multi-home, the market exhibits positive network effects, and investment by two firms is more cost-efficient than investment by one.