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《Journal of Hubei University of Economics》 2015-01
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Fiscal Decentralization, Local Government Incentive and Its Behavior Variations

ZHENG Yan-bing;Graduate School of China Academy of Social Sciences;  
Since the opening and reform, fiscal decentralization and political centralization have been the main properties of China's economic system. Fiscal decentralization endows the local governments the residual claim rights for its local economic development and brings them strong fiscal incentive system. Meanwhile, because of political centralization, the local government leaders face political incentive system for promoting. Moreover, they are also influenced by the individual incentive system for the existence of rent seeking behaviors. Under the mixed influence of the three incentive systems above, the behaviors of the local government varies, for example, the local governments over emphasizing of economic growth but overlooking the supplying of public services and the distortions of the structure of fiscal expenditure.
【CateGory Index】: F812.2
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