Intergovernmental Fiscal Relationships in China: A Simple Model Based on the Nonsymmetric Nash Solution
Intergovernmental Fiscal Relationships in China: A Simple Model Based on the Nonsymmetric Nash Solution
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中国政府间财政关系:基于非对称纳什解的简单模型
DOI:
10.1007/s41685-017-0040-6
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发表时间:
2017
影响因子:
1.4
通讯作者:
Mototsugu Fukushige and Yingxin Shi
中科院分区:
文献类型:
--
作者:
Chen;C.-W.;Oguchi;T.;Mototsugu Fukushige and Yingxin Shi
We propose a new empirical approach to analyze fiscal decentralization and apply it to Chinese intergovernmental fiscal relationships between the central government and provincial governments, using nonsymmetric Nash solution. In calculating budgetary revenue and expenditure shares, we include extra budgetary revenue and expenditure. We find that although an increase in either income inequality or real per capita GDP lowers local governments’ bargaining power within the budgetary system, local governments can offset this by obtaining more bargaining power over extra budgetary expenditures. Another finding is that although urbanization increases provincial governments’ budgetary revenues, it also restricts the scope for further budgetary expenditure.