This article examines the evolution of the rules that govern central-local government relations in the Chinese political economy. Although the federalism that accompanied China’s market reforms has substantially facilitated economic growth, it has also created powerful incentives for local...

The upsurge of shadow banking is typically driven by rising financing demand from certain real sectors. In China, the four-trillion-yuan stimulus package in 2009 was behind the rapid growth of shadow banking after 2012, expediting the development of Chinese corporate bond markets in the...

The upsurge of shadow banking is typically driven by rising financing demand from certain real sectors. In China, the four-trillion-yuan stimulus package in 2009 was behind the rapid growth of shadow banking after 2012, expediting the development of Chinese corporate bond markets in the...

China's four-trillion-yuan stimulus package fueled by bank loans in 2009 has led to the rapid growth of shadow banking activities in China after 2012. The local governments in China financed the stimulus plan mainly through bank loans in 2009, and resorted to non-bank debt financing after 2012...

This paper investigates the selective public goods provision behavior of China’s local government and its effects. Theoretic models of dominative local officials are constructed to understand public goods provision, which is compared with the residents’ as well as sectors’ demand for...

In the process of China's reform, an underlying reason that arouses economic and political challenges is the local benefit-transfers issue. This paper frames the game between central and local governments of China to provide insightful policies for addressing the issue under the current...

We explore theoretically and empirically whether social interaction, including local and global interaction, influences the incidence of corruption. We first present an interaction-based model on corruption that predicts that the level of corruption is positively associated with social...

We explore theoretically and empirically whether social interaction, including local and global interaction, influences the incidence of corruption. We first present an interaction-based model on corruption that predicts that the level of corruption is positively associated with social...