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-driven economic growth has led to a surge in local government debt in the past decade. To understand the relationship between local … government debt and regional competition in GDP growth, we build a simple decision model of local governors based on prospect … theory. Using a comprehensive data set of prefectural-level government debt, our empirical results confirm the theoretical …
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local governments largely relied on increasing tax rates. The one commonality is in the field of regulation, when both …
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