Although it had a a lower income level than India in 1980, China's 2006 per capita gross domestic product stands more than twice that of India's. This paper investigates the role of the business environment in explaining China's productivity advantage using recent firm-level survey data. The...

This study examines China's rural‐urban segmentation and its causes in the context of economic reforms. Household survey and aggregate data indicate a V‐shaped process in which rural‐urban consumption and income differentials decreased between 1978 and 1985, but then have continually...

Using a trading volume-based measure, we study the differences between institutional and individual investors in herding. First, better-informed institutional investors trade more selectively, whereas less-informed individuals allocate their investments evenly across stocks. Second, individual...