China’s Proactive Fiscal Policy

In contrast to the traditional Western approach to macro-fiscal management,China’s proactive fiscal policy is founded on a people-centered development philosophy and,with distinctive Chinese characteristics,is a significant policy innovation of macroeconomic management in the Chinese modernization.Although there are notable distinctions between the Western“Keynesian”and the“nonKeynesian”schools of thought,both of these approaches’core policy goals and methodological roots are the same,composing the traditional Western macro-fiscal approach.This approach faces increasing real dilemmas.China’s proactive fiscal policy,however,places greater emphasis on future potential growth rates in addition to equilibrium between supply and demand,achieving a fiscal policy transformation with a new approach.In this paper we argue that with such a new approach,China should reconsider the nature and reasonable level of the fiscal deficit,the function and risk assessment criteria of government debt,the scope and effects of reductions in taxes and fees,its approach and focus of demand management,and the costs and resulting efficiencies of policies in order to develop a new fiscal policy paradigm that is more in line with its stated goals.

Comparative Analysis of Fiscal Sustainability of China and the US

The fiscal sustainability of China and the United States is of major concern globally. Based on comparative data analysis, this paper reveals that the government debt level of both countries is within the normal range. Robust growth prospects of both countries will also vigorously support their future mitigation of government debt level. Comparatively speaking, China＇s government debt level is healthy and, despite extensive concerns, even its local government debt is not very high. The assessment that China may encounter a crisis is not supported by evidence. Yet in the long run, both countries will face pressures from increased fiscal spending on elder care and healthcare stemming from an ageing population, which will threaten their fiscal sustainability. These challenges require both countries to speed up reforms of elder care and healthcare. Specifically, China needs to focus on elder care reforms and the US should attach more importance to healthcare reforms.

An Empirical Analysis on the Impacting of Fiscal Policy on Haze Governance ：Based on the Data of Anhui Province from 2005 to 2014

为准确把握财政政策对雾霾治理的影响,在确立财政政策投入和雾霾治理产出两个维度的基础上,建立评价指标体系,选取安徽省2 0 0 5 年-2 0 1 4 年评价数据,建立T0 P S IS模型,进行实证评价.结果表明：总体上,安徽省财政政策对雾霾治理影响效应表现逐年削弱的变化特征.其次,分阶段来看,2 0 1 0年以前,安徽省财政政策对雾霾治理的影响出现“W ” 型变化特征,即“削弱-增强-削弱-增强” 的变化.2 0 1 1年-2 0 1 3年财政政策效果快速下降;2 0 1 4年以来,财政政策对雾霾治理的影响有增强的趋势.再次,财政资金使用不科学,技术创新不足一定程度上削弱了财政政策对雾霾治理的影响效应.为进一步增强财政政策对雾霾治理的积极影响,充分发挥财政职能,建议完善财政资金的专项转移支付制度,推进资源税制改革,完善相关财政专项补贴政策,推进财政政策绩效评价.

Fiscal Expenditure and Income Gap between Urban and Rural Residents: An Empirical Study Based on Malmquist Index and Spatial Econometrics

Based on the analysis methods of non-parametric Malmquist index and spatial econometrics as well as the provincial panel data in 2007-2010, this paper estimates the efficiency of fiscal expenditure from local governments in china in terms of reducing the income gap between urban and rural residents for the first time and evaluates the spatial correlation and heterogeneity of this efficiency. The results have shown that the fiscal expenditure of most provinces is of low efficiency in reducing the income gap between urban and rural residents, and the expenditure efficiency of local governments is not relevant to their levels of economic development. Besides, the efficiency on reducing the urban-rural income gap between different regions of China has a tendency of convergence. But this is mainly reflected inside the regional economic belt. There is significant difference between the efficiency of each economic belt. The central region has the highest efficiency in a rising trend, the western region has the lowest efficiency in a downward trend, while the eastern region is relatively stable.

The Changes of Fiscal Agriculture-Supporting Expenditure and Farmers' Income Based on Grey Correlation Theory

According to the relevant data of China Statistical Yearbook and Chinese Rural Statistical Yearbook in the year of 2009,the changes of grey correlation degree of farmers' net income,various items of incomes,national gross agriculture-supporting expenditure and various items of expenditures,farmers' net income and various items of fiscal agriculture-supporting expenditure in the Eighth Five-Year Plan,Ninth Five-Year Plan and Tenth Five-Year Plan by using grey correlation degree and the by choosing seven indicators covering income from wage and salary,income from household business,transfer income and property income,agricultural production-supporting expenditure,agricultural basic construction expenditure,expenses of three items of agricultural technology and the fee of rural relief.The results show that the grey correlation degree of each time period and household net income shows the downward trend;from overall perspective,the grey correlation degree of national gross agriculture-supporting expenditure,agricultural basic construction expenditure and agricultural production-supporting expenditure shows the descending trend;the grey correlation degree of fiscal agricultural supporting expenditure and the expenditure of three items of agricultural technology and fee of rural relief show the upward trend;the influence of agricultural production-supporting expenditure on farmers' income shows downward trend;the influence of agricultural basic construction on farmers' income shows upward trend;the fee of rural relief play an active role in the promoting the farmers' income increase;the role played by fee of rural relief in promoting farmers' income increase should be further increased;the increase of farmers' income shows great reliance on agricultural science and technology.In the end,the relevant suggestions on establishing stable increase mechanism of fiscal agricultural support and insisting on the dynamic adjustment of the structure of fiscal agricultural supporting capital are put forward.

RECURSIVE UTILITY,PRODUCTIVE GOVERNMENT EXPENDITURE AND OPTIMAL FISCAL POLICY

This paper employs a stochastic endogenous growth model extended to the case of a recursive utility function which can disentangle intertemporal substitution from risk aversion to analyze productive government expenditure and optimal fiscal policy, particularly stresses the importance of factor income. First, the explicit solutions of the central planner＇s stochastic optimization problem are derived, the growth maximizing and welfare-maximizing government expenditure policies are obtained and their standing in conflict or coincidence depends upon intertemporal substitution. Second, the explicit solutions of the representative individual＇s stochastic optimization problem which permits to tax on capital income and labor income separately are derived ,and it is found that the effect of risk on growth crucially depends on the degree of risk aversion,the intertemporal elasticity of substitution and the capital income share. Finally, a flexible optimal tax policy which can be internally adjusted to a certain extent is derived, and it is found that the distribution of factor income plays an important role in designing the optimal tax policy.

Path Choice and Fiscal Policies of Three Gorges Reservoir in Post-Migration Era

The developmental status of the Three Gorges Reservoir in the post-migration era is expounded.Firstly,positioning of ecological reservoir is incompatible with its development;secondly,adopting the market selection and government-directed migration mode;thirdly,tough task in the post-migration era;fourthly,prevention of geological disasters and environmental management.After the analyses,the adoptable approaches for developing the Three Gorges Reservoir are concluded.The approaches cover supporting migrants and trying to stabilize and enrich them;supporting the development of industries around the reservoir;intensifying the construction of ecological environment in the reservoir;and strengthening the support of central fiscal policies.The policies and suggestions on developing the Three Gorges Reservoir from the perspective of fiscal policies are put forward.Firstly,they include the fiscal and tax measures on prompting ecological migration and stabilizing and enriching migrants.The specific measures include the fiscal and tax measures on promoting the employment of migrants;measures on providing social security for migrants;fiscal subsidies and preferential policies and increasing the input on solving the problems left after reconstruction.Secondly,they are the fiscal and tax measures for promoting the industrial development in the reservoir.The specific contents include displaying the functions of industrial fund to optimize the industrial structure of the reservoir;providing preferential policies on taxes to attract capitals and intensifying the strength of local finance.

CHINA'S REGIONAL DISPARITY IN 1981-2000:OPENNESS AND DEVELOPMENT OF NON-STATE-OWNED ENTERPRISES AND FISCAL DECENTRALIZATION

While China's economic growth has been impressive since 1978, regional disparity in terms of provincial per capita GDP has been increasing. On the other hand, this rapid but uneven growth was accompanied by China's deepening openness and structural reforms including the development of non-state-owned enterprises (non-SOEs) and fiscal decentralization. Based on quantitative analyses, this paper tries to explore the features of regional disparity in China and the relationships between regional growth and China's openness and economic structure reforms in the period from 1981 to 2000. The paper finds that the catching-up of the coastal region to the initially rich provinces, which are mainly located in inland areas, brought about a convergence of the growth pattern across provinces in the 1980s.The subsequent divergence in the provincial growth rates between the coast and the interior generated an enlarging regional disparity in China in the 1990s. The ever-faster growth in the coastal region was benefited by China's openness and the development of non-state-owned enterprises. The development of non-state-owned enterprises underlies the higher operational efficiency in the coastal region. Additionally, with the insignificant regression results, fiscal decentralization was observed to facilitate faster growth in the coast region. The findings justify the initiative of the 'West Region Development Strategy' and offer some policy implications for China.

Seven Decades of China's Fiscal Modernization

After its founding in 1949,the People’s Republic of China'started to modernize its fiscal system-an essential part of its broader modernization drive.Its unified and wellfunctioning fiscal system supported the stability of the nascent government,and helped stabilize the economy and restore public order after then.In the era of the planned economy,public finance in the country was put at the service of economic plans while striving to reach a fiscal equilibrium,which was of great significance at that time.Economic equilibrium,including fiscal,credit and material equilibrium,was perceived as a manifestation of macroeconomic stability.Problems encountered during the era of the planned economy led to the launch of a reform and opening-up program-a brilliant chapter in modern Chinese history.The Third Plenum of the 11th CPC Central Committee marks a brand-new era of reform and opening-up.In this transformative period,China’s fiscal system was initially decentralized to keep abreast of its“planned commodity economy.”After the goal of socialist market economic reform was announced in 1992,China’s fiscal reforms embarked on a fast track.As China'strived to build a public finance system compatible with a socialist market economic system,fiscal reforms took place and fiscal policy played a more important role in macroeconomic regulation.The Third Plenum of the 18th CPC Central Committee held in November 2013 set the goal of the reform to establish a modern fiscal system.Afterwards,China deepened its fiscal reforms,focusing on budget management,taxation and reform of central-local fiscal relations.

Fiscal Policy Effect Analysis Based on Agents Response Equilibrium (ARE) Model

Agents response equilibrium (ARE) model has been taken advantage of to build a multi-agent system for analyzing fiscal policy effect. Through establishing various types of economic entities and endowing them with abilities to react and make decision, the whole system will evolve to new conditions in response to policy change. Compared with different scenarios, it can be concluded that when raising taxation ratio, sectoral scale will shrink to some extent. But supported by government expenditure, certain sectors could be kept in comparatively larger production scale.

Modelling the Iranian Petroleum Contract fiscal regime using bargaining game theory to guide contract negotiators

Based on Iran's sixth development plan,the country's oil and gas industry requires an investment of about$200 bn in the next five years to increase production.The Iranian government,to attract and motivate international oil company investment in their oil and gas fields,has presented a new type of risk service contract:the Iranian Petroleum Contract(IPC).This paper summarizes the features of the IPC and presents mathematical models of its fiscal regime for the benefit and guidance of both the National Iranian Oil Company(NIOC)and the contractors.Next,adopting bargaining game theory provides a mathematical model for reaching a win-win situation between the NIOC and the contractor.Finally,a numerical example is given and a sensitivity analysis performed to illustrate the implementation of the proposed models.The contractor and the NIOC may use these models when preparing their proposal and in the course of actual negotiations to calculate their internal rate of return,remuneration fee,and net present value for developing the fields at different conditions of their bargaining power,and derive a logical bargain to protect their best possible interests.

Structural Fiscal Regulation and Choice of Instruments in the New Normal

Based on the overall consideration of individual behaviors of Ricardian and non-Ricardian households, this paper develops a New Keynesian dynamic stochastic general equilibrium(DSGE) model to form a relatively systematic research framework for analyzing the economic effects of structural fiscal instruments. Our study findsthat great differences exist in the macroeconomic effects of different fiscal instruments, suggesting that the government should prudently select these fiscal instruments in fiscal macro-control. The simulating results of fiscal shocks show that the effect of tax cut is superior to the effect of increased spending. In the context of slowing economic growth and less potent stimulation policy, the government should transform its previous regulatory approach of fiscal policy and shift from hefty spending stimulus policy to structural tax cuts. This paper believes that China should step up the implementation of public-private partnership, increase its spending on social security, healthcare, pension and public services and facilitate the transition toward a service-based government; and that tax policy should focus on structural tax cuts on consumption to promote the transition of demand structure toward consumption-driven.

Revisiting the nexus between fiscal decentralization and CO_(2)emissions in South Africa:fresh policy insights

The argument over fiscal decentralization and carbon dioxide emission(CO_(2))reduction has received much attention.However,evidence to back this claim is limited.Economic theory predicts that fiscal decentralization affects environmental quality,but the specifics of this relationship are still up for debate.Some scholars noted that fiscal decentralization might lead to a race to the top,whereas others contended that it would result in a race to the bottom.In light of the current debates in environmental and development economics,this study aims to provide insight into how this relationship may function in South Africa from 1960 to 2020.In contrast to the existing research,the present study uses a novel dynamic autoregressive distributed lag simulation approach to assess the positive and negative changes in fiscal decentralization,scale effect,technique effect,technological innovation,foreign direct investment,energy consumption,industrial growth,and trade openness on CO_(2)emissions.The following are the main findings:(i)Fiscal decentralization had a CO_(2)emission reduction impact in the short and long run,highlighting the presence of the race to the top approach.(ii)Economic growth(as represented by the scale effect)eroded ecological integrity.However,its square(as expressed by technique effect)aided in strengthening ecological protection,validating the environmental Kuznets curve hypothesis.(iii)CO_(2)emissions were driven by energy utilization,trade openness,industrial value-added,and foreign direct investment,whereas technological innovation boosted ecological integrity.Findings suggest that further fiscal decentralization should be undertaken through further devolution of power to local entities,particularly regarding environmental policy issues,to maintain South Africa’s ecological sustainability.South Africa should also establish policies to improve environmental sustainability by strengthening a lower layer of government and clarifying responsibilities at the national and local levels to fulfill the energy-saving functions of fiscal expenditures.

Taxpayers Fraudulent Behavior Modeling The Use of Datamining in Fiscal Fraud Detecting Moroccan Case

The fraudulent behavior of taxpayers impacts negatively the resources available to finance public services. It creates distortions of competition and inequality, harming honest taxpayers. Such behavior requires the government intervention to bring order and establish a fiscal justice. This study emphasizes the determination of the interactions linking taxpayers with tax authorities. We try to see how fiscal audit can influence taxpayers’ fraudulent behavior. First of all, we present a theoretical study of a model pre established by other authors. We have released some conditions of this model and we have introduced a new parameter reflecting the efficiency of tax control;we found that the efficiency of a fiscal control have an important effect on these interactions. Basing on the fact that the detection of fraudulent taxpayers is the most difficult step in fiscal control, We established a new approach using DATA MINING process in order to improve fiscal control efficiency. We found results that reflect fairly the conduct of taxpayers that we have tested based on actual statistics. The results are reliable.

The Influence of Monetary Policy and Fiscal Policy on the Rural Residents' Consumption

This paper conducts an empirical analysis of influence of fiscal expenditure supporting agriculture monetary supply on rural residents' s consumption by adopting a vector auto-regression model,based on the data from 1978 to 2011.The study indicated that:in the short term,fiscal policy is the Granger reason of rural residents' consumption,monetary policy is not the Granger reason of rural residents' consumption;in the long term,the comprehensive function of fiscal policy and monetary policy has a great influence on the of rural residents' consumption.Under the background of Economic Transition and Urbanization,Expanding Domestic Demand is the slogan.We should coordinate fiscal policy and monetary policy to promote the rural residents' consumption.

County-Level Tax Sharing:A Statistical Basis for Measuring China's Fiscal Decentralization

Controversies exist in literature regarding what indicators should be employed to measure China's fiscal decentralization. This paper measures China's fiscal decentralization by the sharing ratios of county-level VAT and corporate income tax(CIT). This approach avoids such problems as homogeneous denominator, and reflects the intricate interactions between governments at different levels. Based on extensive sources including the National Fiscal Statistical Information at Prefecture and County Levels and China County(City) Socio-Economic Statistical Yearbook over the 1998-2007 period, our estimation and analysis led to the following findings:(1) Since 2002, counties have retained a falling share of revenues;(2) a multidimensional horizontal comparison reveals a pattern in the county-level tax sharing ratio, i.e. counties in central and eastern regions retain a higher share of tax revenues compared with those in western and northwestern regions.These findings explain the fiscal difficulties at the grassroots level, and can be used to conduct a quantitative analysis of the determinants and economic effects of China's fiscal decentralization."

Option of Fiscal and Financial Polices Based on Monitoring Boom of Urban Employment

With downward pressure of economy facing, monitoring boom index of employment continue to decline. This paper will research on how to cope with urban employment problem using fiscal and financial polices,through building system of boom of urban employment, and identifying risk signal of Chinese urban employment.

Market Regulation and Fiscal Replenishment: An Analytical Framework for the Space Control Intensity for Regulatory Detailed Planning

Regulatory detailed planning is the most direct management tool for urban development and construction activities. Through theoretical deduction, this paper demonstrated the elastic relationship between the land-transferring price and the floor area ratio(FAR) of residential land, which represented the space control intensity for regulatory detailed planning. Based on the two dimensions of market regulation and fiscal replenishment, this paper also established an analytical framework for the space control intensity for regulatory detailed planning. The results showed that the space control intensity for regulatory detailed planning decreased with the expansion of urban scale and that the weaker the market regulation and the stronger the land finance dependence, the weaker the space control intensity for regulatory detailed planning. Based on this, this paper proposed that local governments should strengthen the scientificity and openness of regulatory detailed planning, institutionally resolve the predicament due to fiscal decentralization, and reduce the dependence on land transfer income.

Regional Economic Geography with Externalities, Congestion, and Fiscal Policies in a Small-Open Growth Economy

This paper develops a two-regional growth model with amenity, capital accumulation and regional public goods with public goods and fiscal policies. The economy consists of two regions and each region consists of the industrial sector and public sector. The industrial sector provides goods in perfectly competitive markets. The public sector, which is financed by the regional government’s tax incomes, supplies regional public goods. The public goods affect both firms and households. We show how to find equilibrium values of the dynamic system and simulate model. Then, we carry out comparative statics analysis with regard to parameter changes in tax rates, congestion and amenity. Our comparative statics analysis provides some important insights. For instance, a main difference between the effects of increasing the two regions’ tax rates on the output is that as the technologically advanced region’s (the other region’s) tax rate on the industrial sector is increased, the national industrial output, national capital employed by the economy, and the national wealth are increased (reduced). In the region which increases the tax rate, the wage rate, consumption and wealth per capita, output per labor force, the population, and land rent are increased, and the corresponding variables in the other region are reduced.

Interprovincial Effects of Fiscal Decentralization on Financial Decentralization in China

By motivating local governments to fght for financial resources, China＇s tax sharing reform has affected the structure of financial decentralization and inflated local financial systems, thus spawning regional financial risks. Based on theoretical analysis and empirical evidence, this paper has arrived at the following findings： due to different policy objectives, central and local governments exhibit different fiscal and financial behaviors; public finance and financial sector have become financing instruments with certain convertibility under local economic growth framework,＂ fiscal decentralization inevitably affects financial decentralization and lays the foundation for provincial fiscal disparities, resulting in a certain spatial effect of interprovincial fiscal variable; fnancial explicit centralization/implicit decentralization and fiscal centralization have fueled local competition for financial resources and resulted in correlation between the spatial effects of provincial financial and fiscal variables, and moreover, their mismatch has also spawned fiscal and financial risks on various fronts. Hence, setting clear boundaries of financial centralization and decentralization and ensuring local government fiscal accountability is the key to the prevention and mitigation of fiscal and financial risks in China.