A Bridge on Economic Issues between China and the World
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The Economic Toll of China’s Tutoring Ban
Zibin Huang, Yinan Liu, Mingming Ma, Leo Yang Yang, Aug 27, 2025China's 2021 “Double Reduction'' policy, which banned for-profit K12 academic tutoring, triggered an abrupt contraction in the education-services labor market. Using real-time job-posting and firm-registration data, we estimate over three million job openings lost in four months and at least 11 billion RMB in value-added tax (VAT) revenue losses within 18 months, alongside unintended negative spillovers to untargeted arts and sports training.
Notching R&D Investment with Corporate Income Tax Cuts in China
Zhao Chen, Zhikuo Liu, Juan Carlos Suárez Serrato, Daniel Yi Xu, Aug 16, 2017To encourage innovation, the Chinese government gave tax incentives to firms whose R&D intensity (as measured by the ratio of R&D expenditures over total sales) exceeds a threshold that varies by their total sales. Using a major corporate tax reform in 2008, Professor Daniel Yi Xu from Duke University and his coauthors provide empirical evidence for some "strategic" behavior — including some relabeling of administrative expenditures as R&D — by the firms to take advantage of the tax incentives.
Tariff Passthrough at the Border and at the Store: Evidence from US Trade Policy
Alberto Cavallo, Gita Gopinath, Brent Neiman, Jenny Tang, Sep 02, 2020We study the impact of recent tariffs on US prices at the border and at the store. Our results imply that, so far, the tariffs’ incidence has fallen in large part on US firms.
How Do Family Planning Policies Reshape the Life of the Chinese Elderly?
Yi Chen, Hanming Fang, Sep 12, 2018In our recent work (Chen and Fang, 2018), we evaluate the long-term consequences of China’s family planning policies on the quality of life of the Chinese elderly. We identify the causal impact by exploiting the provincial heterogeneity in implementing the “Later, Longer, Fewer” policies in the early 1970s. We estimate the causal effect on a set of outcomes, including support from children, consumption, and physical and mental health. We find that family planning has either no effect or a slightly positive effect on elderly parents’ physical health status; however, parents who are more exposed to family planning policies report significantly worse mental health.
Healthy Life Expectancy in China
Han Li, Katja Hanewald, Shang Wu, Dec 20, 2017We predict and analyze provincial-level healthy life expectancy for 31 provinces of China in 2015. Using data from a wide range of countries, we construct a predictive regression model based on socioeconomic variables such as GDP per capita, health and education expenditures, and the number of hospital beds. We find substantial regional health disparities, with healthy life expectancy varying by up to 10 years between different provinces for both men and women.
