Annual Conference

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Corporate Finance

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May 2017

Politically Motivated Corporate Decisions: Evidence From China

David FELDMAN, Konark SAXENA, Jiaming LI
Every five years Chinese province heads compete for promotions to the national congress by demonstrating superior economic performance. We document pervasive cyclicality in corporate decision-making synchronized with these promotion cycles: taxes firm’s pay are 4.1% higher one year before national...
Keywords: Politically Motivated Corporate Decisions, Corporate Investments, Taxes, Agency, China
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Annual Conference

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International Macroeconomics, Money & Banking

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May 2017

Politicizing Consumer Credit

Pat AKEY, Rawley Z. HEIMER, Stefan LEWELLEN
Powerful politicians can interfere with the enforcement of regulations. As such, expected political interference can affect constituents’ behavior. Using rotations of Senate committee chairs to identify variation in political power and expected regulatory relief, we study powerful politicians’ e...
Keywords: Consumer credit, political interference, political power
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Annual Conference

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Economic Transformation of Asia

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May 2017

Product Market Development and Business Group Affiliation Value: Evidence from an Emerging Market

Narahari HANSOGE, Vijaya B. MARISETTY, Poonam SINGH
In this paper, we attempt to understand whether business group affiliation continues to create value with improvements in institutional environment, especially with increased product market competition. This question comes at a time when there is growing awareness that business groups dominate produ...
Keywords: business groups, Horizontal and Vertical Integration, Deep Pockets and Indian Competition Act, 2002
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Annual Conference

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Economic Transformation of Asia, Senior Fellows/Fellows

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May 2017

From Imitation to Innovation: Where Is all that Chinese R&D Going?

Kjetil STORESLETTEN, Zheng Michael SONG, Michael KONIG, Fabrizio ZILIBOTTI
We construct an endogenous growth model with random interactions where firms are subject to distortions. The productivity distribution evolves endogenously as firms seek to upgrade their technology over time either by innovating or by imitating other firms. We use the model to quantify the effects o...
Keywords: China, Imitation, innovation, Misallocation, productivity, R&D, subsidies, Taiwan, TFP Growth, Traveling Wave
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Annual Conference

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Economic Transformation of Asia

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May 2017

Rationed Fertility: Theory and Evidence

Rufei GUO, Junjian YI, Junsen ZHANG
We analyze the effect of exogenous changes in fertility on child quality both at and off the unrestricted optimal fertility level in a general model with rationed fertility. Besides the price and substitution effects analyzed in the literature, we show that a desired fertility change, representing a...
Keywords: Rationed Fertility, quantity-quality trade-off, intrahousehold resource allocation
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