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《Public Finance Research》 2016-01
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Provincial Governments and Horizontal Equity of Social Assistance in Chinese Rural Areas——A Gini analysis and Theil index decomposition of Rural Di-Bao's fiscal spending 2008-2014

Bai Chen;Gu Xin;  
It is critical for the equalization of social assistance to promote horizontal equity of Rural Minimum Income Support Scheme(Di-Bao) fiscal spending. Based on the county-level data during 2008-2014 and by using the Theil index decomposition, this paper aims to reveal the intra and inter provincial inequality of Di-Bao's fiscal spending and to examine the impact of provincial governments on Di-Bao's horizontal equality. The findings show that compared with provincial governments, most county governments are fiscally overburdened. It indicates that indeed there is serious vertical imbalance among different levels of local governments in Di-Bao's funding allocation. Under such an arrangement, increasingly serious intra-provincial inequality implies the provincial governments' dereliction of duty to promote horizontal equality of Di-Bao's fiscal spending. Therefore,it would be helpful for the equalization and effectiveness of rural social assistance to establish a minimum standard of provincial Di-Bao's funding ratio, in order to ensure the leveling effect of provincial transfer payments.
【Fund】: 北京大学、复旦大学、吉林大学、中山大学、财政部财政科学研究所国家治理协同创新中心的阶段性研究成果;; 国家社科基金重大项目“中国特色现代社会福利制度框架设计研究”(15ZDA050)阶段性成果
【CateGory Index】: F323.89
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