The 2008-2009 global financial crisis has made budget management and fiscal responsibility more imperative in many developed economies. A budget crisis has not occurred in emerging economies such as China. However, in China, the demands of fiscal responsibility have increased against the...

Since the 1990s, China has pushed forward the province-managing-county (PMC) reform in some provinces as an experiment of fiscal decentralization. The reform provides a good opportunity to examine the impact of fiscal decentralization on fiscal behaviors of local governments in China. Using a...