Plausibly Exogenous [1603] - Fiscal Squeeze (06/23/2024)

LHS Variable
Tax enforcement

RHS Variable
Fiscal squeeze

Source of Exogenous Variation
Nation-wide abolition of agricultural taxes in China in 2005 as a natural “fiscal squeeze” experiment in which county governments suffered a severe revenue loss

- Chen (2017), “The effect of a fiscal squeeze on tax enforcement: Evidence from a natural experiment in China”