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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, 2018We 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...
Implicit Guarantees and the Rise of Shadow Banking: the Case of Trust Products
Franklin Allen, Xian Gu, C. Wei Li, Jun Qian, Yiming Qian, Sep 06, 2023The prevalent implicit guarantees provided by financial intermediaries have been a central feature of shadow banking products in China. Our theoretical investigation shows that providing implicit guarantees can be the second-best arrangement and mitigate capital misallocation.
Gender-Targeted Job Ads: Patterns, Impacts, and Mechanisms
Peter Kuhn, Kailing Shen, Feb 27, 2019Gender-targeted job ads are common in many emerging economies. Using data from jobboards—which differ substantially in terms of culture, size, and user groups targeted—our empirical evidence suggests that policies that target workers’ application decisions may be at least as important as policies that target employers’ screening decisions, if not more.
The Impact of Health Insurance on the Wellbeing of Older Chinese
Sisi Yang, Katja Hanewald, Aug 12, 2020Using data from the China Health and Retirement Longitudinal Study (CHARLS) in 2011, 2013 and 2015, we analyze whether the universal health insurance system in China increases the life satisfaction of middle-aged and older adults and to what extent the type of health insurance affects their life satisfaction. We find that the life satisfaction of middle-aged and older adults does not depend on having any health insurance...
Feedback Trading and the Chinese Put Warrants Bubble
Neil D. Pearson, Zhishu Yang, Qi Zhang, Jul 27, 2022There was a bubble in the prices of put warrants traded on the Shanghai and Shenzhen stock exchanges during the summer of 2007. We use investor trading records from a large securities firm to show that put warrant investors engaged in a particular form of feedback trading. This feedback trading exacerbated an initial run-up in put warrant prices caused by a change in the stock transaction tax, and created the bubble.
