The Public Institution Reform of China in 2011 effectively downsized public institutions, which is an important component of the public sector. Using this reform as a quasi-natural experiment, this paper studies the impact of public sector downsizing on private firm profits.With the instrument...

The government of China started its anti-corruption campaign in December 2012. Since then, more than 600 government officials have been investigated. We regard the investigations involving senior officials as signals of increased political uncertainty. Focusing on these events, we study how...