Jia, Junxue; Guo, Qingwang; Zhang, Jing - In: China Economic Review 28 (2014) C, pp. 107-122
Since the tax-sharing reform in 1994, the Chinese fiscal system has exhibited a marked vertical fiscal imbalance—a mismatch between expenditure and revenue assignments—at the local levels, which may cause the common-pool problem in local governments' behavior. Using a large fiscal dataset at...