Weinberger, Ariel
[Verfasser:in]
;
Xuefeng, Qian
[Sonstige Person, Familie und Körperschaft];
Yasar, Mahmut
[Sonstige Person, Familie und Körperschaft]
Erschienen in:Globalization and Monetary Policy Institute Working Paper ; No. 302
Umfang:
1 Online-Ressource (42 p)
Sprache:
Englisch
Entstehung:
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments 2017-01-01 erstellt
Beschreibung:
The export tax rebate (ETR) policy is one of the most frequently used policy instruments by Chinese policy makers. This paper therefore provides a vital analysis of its allocation effects. To motivate our empirical analysis for the allocation effects of the ETR policy, we first add a tax rebate to the Melitz and Ottaviano (2008) model and examine the impact of this policy on firms' markup size and resource allocation between eligible and non-eligible firms for the rebates. We use customs transactions, tax administration, and firm-level data to measure the effect of variation in export tax rebates, taking advantage of the large policy change in 2004. A difference-indifference approach allows us to compare the production and pricing decisions of eligible versus non-eligible firms and the distributional implications. We find that an increase in tax rebates shifts production to eligible firms and that tax rebates increase allocative efficiency