Aligning the interests of local governments with market development is an important issue for developing and transition economies. Using a panel data set from China, we investigate the relationship between provincial government's fiscal incentives and provincial market development. We report...

1. Basic concepts for the theory of public investment -- 2. Methods of optimization over time -- 3. Optimal investment planning in a one-commodity model -- 4. Optimal investments in a two-sector model -- 5. Objectives, markets, and public instruments -- 6. Optimal policy and controllability with...