The Fourth China Economics Summer Institute was held at Tsinghua University during July 1-3, 2011. This workshop was co-sponsored by UC Berkeley, the University of Chicago, Booth School of Business, the LICOS-Center for Institutions and Economic Performance at the Katholieke Universiteit Leuven, the School of Economics and Management at Tsinghua University and the National Institute for Fiscal Studies at Tsinghua University. And it was also organized in collaboration with the Bureau for Research and Economic Analysis of Development (BREAD), National Bureau of Economic Research (NBER) and Center for Economic and Policy Research (CEPR) networks of academic economists.