This paper draws on a natural experiment generated by the Key Tax Source (KTS) supervision in China to evaluate the impact of strengthening tax administration on firm's emission behavior. Using a Fuzzy Regression Discontinuity Design, we find that KTS supervision by State Administration of...

Information quality affects matching and marital outcomes. We show in a simple two-dimensional matching model that a noisier cue for one trait leads to a shift in sorting tradeoff toward the other, lowers average welfare but the impact is asymmetric. To test the predictions, we explore the...

Policies tend to alternate between policy makers and their successors. We argue that differences in policy makers' ideology are not necessary factors in explaining this phenomenon of "policy see-sawing." Instead, we propose a novel mechanism by developing a dynamic model, where policy makers...

We investigate the effect of trade liberalization on corporate income tax avoidance in a sample of Chinese manufacturing firms, using China's entry into the World Trade Organization (WTO) as a natural experiment. We find that firms engage in more tax avoidance in industries with larger tariff...

We study how the infusion of capital through SEOs affects employment through a technology channel. Using exogenous shocks on the eligibility to issue SEOs in China, we find that SEOs lead to more expenditures on technology-related assets, more high skill workers, and fewer low skill workers. Low...