China's recent monetary stimulation has substantially boosted economic. We argue that its efficacy derives from state control over its banking and corporate sectors. Beijing ordered state-owned banks to lend, and they lent. Beijing ordered centrally-controlled state-owned enterprises (SOEs) to...

The author points out that property rights of state-owned enterprises (SOEs) display large cross-sectional and time-series variations. In the 1980s, Chinese SOE managers faced firm-specific profit-retention rates, had alternative production decision rights and discretion in employee wage...