NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
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Notching R&D Investment with Corporate Income Tax Cuts in China

Zhao Chen, Zhikuo Liu, Juan Carlos Suárez Serrato, Daniel Yi Xu

NBER Working Paper No. 24749
Issued in June 2018, Revised in March 2019

---- Acknowledgments ----

We are very grateful for comments from Manuel Adelino, Ashish Arora, Pierre Bachas, Michael Best, Wesley Cohen, Dhammika Dharmapala, Michael Devereux, Rebecca Diamond, Bronwyn Hall, Jim Hines, Damon Jones, Henrik Kleven, Ben Lockwood, Jill Popadak, Jim Poterba, Nirupama Rao, Mark Roberts, Joel Slemrod, Stefanie Stantcheva, John Van Reenen, MazharWaseem, Shang-JinWei, Daniel Wilson, and Eric Zwick as well as seminar participants at ASSA, CEPR, Chicago (Booth & Becker Friedman), Cornell, Drexel, Duke (Fuqua & Econ), FRB Minneapolis, FRB Philadelphia, FRB San Francisco, Hitsotsubashi University, Hong Kong University, IIPF, LSE, MIT, National School of Development (PKU), NBER (Dev, Ent, China, CCER), NTA, Oxford University, Penn State, Stanford (SIEPR & Econ), Toronto, UCLA, UCSD (Econ & Bunching Conference), University of Alberta, University of Maryland, University of Melbourne, Warwick University, and ZEW MaTax. Dan Garrett, Yuxuan He, and Matt Panhans provided outstanding research assistance. This project is funded by NSF grant #17300024 and Suárez Serrato is also grateful for funding from the Kauffman Foundation. All errors remain our own. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

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