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Central Government Credibility and Local Tax Efforts: a Game Theoretic Model

Chapter
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Part of the Studies on the Chinese Economy book series (STCE)

Abstract

As discussed in Chapter 1, China introduced a decentralized revenue-sharing system (that is, the fiscal contract system) in 1980. Despite many changes, the fiscal contract system maintained two features between 1980 and 1993: the provincial and lower level governments collected most of the revenues, except for a few taxes such as custom duties; each province remitted a certain amount (or percentage) of its locally collected revenue to the center, or received a certain amount of central governmental transfer, according to a contract signed with the center.

Keywords

Economic Management Revenue Collection Commitment Regime Optimal Revenue Intergovernmental Relation 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Jun Ma 1997

Authors and Affiliations

  1. 1.The World BankUSA

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