What drives some households to take risks and hold financial instruments while others don’t? We document the extent to which overconfidence plays a role in households’ reported financial risk aversion and their actual investment behavior, using data from the China Household Finance Survey....

This paper exploits a tax reform on manufacturing firms in China to study the impact of taxes on firm innovation. The reform switched the corporate income tax collection from the local to the state tax bureau and reduced the effective tax rate by 10%. The reform only applied to firms established...

This paper exploits a tax reform on manufacturing firms in China to study the impact of taxes on firm innovation. The reform switched the corporate income tax collection from the local to the state tax bureau and reduced the effective tax rate by 10%. The reform only applied to firms established...