IDEAS home Printed from https://ideas.repec.org/a/mes/emfitr/v53y2017i9p1943-1960.html
   My bibliography  Save this article

Public Expenditure Interactions of Chinese Local Governments: A Simultaneous Equations Network Approach

Author

Listed:
  • Jinghua Lei
  • Yanbin Chen
  • Junxue Jia
  • Kai Liu

Abstract

Fiscal competition, mimicking, and interactions among local governments exist as a complex network. To better model and estimate public expenditure interactions of Chinese local governments, we adopt a simultaneous equations network approach in which spatial dependence of multiple components of local governments’ spending and also the internal competition among different components of public expenditure within the same city are considered. Using Chinese county-level fiscal data, we find that the endogenous peer effect for capital construction expenditure is positive among Chinese local governments, capital construction expenditure and administrative expenditure are complements rather than substitutes, there is no fiscal mimicking of social welfare expenditure, and there is a strong crowd-out effect of administrative expenditure on social welfare spending.

Suggested Citation

  • Jinghua Lei & Yanbin Chen & Junxue Jia & Kai Liu, 2017. "Public Expenditure Interactions of Chinese Local Governments: A Simultaneous Equations Network Approach," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 53(9), pages 1943-1960, September.
    • Handle: RePEc:mes:emfitr:v:53:y:2017:i:9:p:1943-1960
    DOI: 10.1080/1540496X.2016.1267004
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1540496X.2016.1267004
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1540496X.2016.1267004?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Can Zhang & Tengfei Liu & Jixia Li & Mengzhi Xu & Xu Li & Huachun Wang, 2023. "Economic Growth Target, Government Expenditure Behavior, and Cities’ Ecological Efficiency—Evidence from 284 Cities in China," Land, MDPI, vol. 12(1), pages 1-30, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:emfitr:v:53:y:2017:i:9:p:1943-1960. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MREE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.