The Evolution and Remodeling of Fiscal Role in National Governance
—Based on Risk Society
Liu Shangxi, Li Yipeng（ ３ ）
Frontier Advancements in Western Fiscal Fundamental Theory: From the Perspective of the State and the Individual
Yao Dongmin, Dong Hongru, Wang Siyuan, Su Daiyu（18）
From Imbalance to Equilibrium: The Impact of the Structure of Basic Public Services on High-Quality Development
Dong Yanling, Li Hua（38）
Does Fiscal Education Expenditure Promote the Common Prosperity of Urban and Rural Residents?
—Empirical Evidence Based on Micro Household Survey Data
Jia Tingyue, Wang Xiaohan, Si Jichun（57）
Local Government Debt and the Improvement of Non-Farm Employment
Mao Jie, Ren Zhanshang（71）
Geographic Distance and the Allocation of Local Government Special Debt
Zhu Xingshu, Hu Yue（85）
Environmental Protection Tax, Government Innovation Subsidy and Enterprises’ Green Innovation
Zhang Xiaoying, Li Hongxia, Ma Yan, Tang Zijie（98）
The Impact of Provincial Pooling on Pension Insurance Coverage
Cai Weixian, Liu Mengya, Zhu Di（114）
The Evolution and Remodeling of Fiscal Role in National Governance
—Based on Risk Society
Liu Shangxi Li Yipeng
Abstract: Public finance is the foundation and important pillar of national governance, playing different roles as a public entity, an economic entity, and a social entity in the governance process. In different historical periods of reform and opening up, changes of public risks have always been the driving force in promoting the evolution of fiscal roles. In the century of great changes, the characteristics of a risk society have become increasingly prominent. Preventing and resolving major risks has become an eternal theme in the process of Chinese path to modernization, which has brought profound changes to the logical basis of the fiscal role. In the process of reshaping the national governance structure, the common mission of multiple fiscal roles ultimately boils down to hedging various public risks and injecting certainty into sustainable development. To this end, it is necessary to build a risk-oriented hierarchical fiscal system and strengthen the risk governance capabilities of governments at all levels; to improve the relationship between government and market by the rule of law, and strengthen the constraint relationship between public finance and the market; to build a sustainable relationship between government and society, thus better leveraging the fundamental role of public finance in public risk governance.
Keywords: National Governance; Fiscal Role; Risk Society; Uncertainty; Chinese Path to Modernization
Frontier Advancements in Western Fiscal Fundamental Theory:
From the Perspective of the State and the Individual
Yao Dongmin Dong Hongru Wang Siyuan Su Daiyu
Abstract: This article reviews the latest developments in Western fiscal fundamental theory, attempting to summarize and expand from two parallel perspectives: the state and the individual. The study finds: First, the consensus gradually forms in the research of the history of fiscal thought that incorporating value judgments into the fiscal discipline, and the analysis of the formation process of classic fiscal concepts, fully demonstrates the normative research orientation of fiscal studies. By employing empirical research’s interdisciplinary attributes, it proves that the comprehensive value orientation of both the state and the individual plays a significant role in advancing the development of fiscal fundamental theory. Second, a significant amount of research focuses on the role of fiscal policy in state-building: distinguishing the relationship between fiscal capability and state capacity; analyzing the effects of fiscal policy and the size of the state; depicting how the budget becomes the most crucial political activity of a state; proving that government debt not only stimulates the economy but is also an important carrier of national credit; discussing that the development of global public goods theory enables fiscal policy to transcend national boundaries. Third, research incorporates human behavioral factors (the “irrational” elements) into the individual category of fiscal theory, to better understand individual tax compliance and fiscal illusions in order to enhance the efficiency of fiscal expenditures.
Keywords: Fiscal Fundamental Theory; Theory Developments; The State; The Individual
From Imbalance to Equilibrium:
The Impact of the Structure of Basic Public Services on High-Quality Development
Dong Yanling Li Hua
Abstract: Enhancing the balance of basic public services has clarified the new requirements for the development of public services in China in the new era. This paper focuses on whether supply structure constrains the high-quality developmental effects of basic public services. That is the question of whether there is a barrel effect of structural shortcomings. This paper deduces the theoretical mechanism of the supply structure of basic public services on total factor productivity, measures the degree of balance in the structure of basic public services and the level of high-quality development of 267 cities above the prefecture-level city level nationwide from 2011 to 2020. Using the coupled degree of coordination model and the U-SE-SBM-DEA model and the ML index, we use econometric methods to empirically analyze the supply structure of basic public services on high-quality development. The results are as follows. China’s supply structure of basic public services is in a state of imbalance, and the positive effects on high-quality development have not been fully realized. There is the “U”-shaped relationship between the supply structure of basic public services and high-quality development, and the effect is only apparent when the degree of balance in the structure of basic public service reaches 0.206. There are regional differences in the extent to which the effect of supply structure of basic public services on high-quality development has been brought into play. The balanced promotion of the supply structure should be adapted to local conditions. There is the complementarity between the effects of supply level of basic public services on high-quality development and the effect of supply structure of basic public services on high-quality development. This paper provides new evidence of the supply structure of basic public services on high-quality development from the supply struture perspective.
Keywords: Basic Public Services; Supply Structure; High-Quality Development; The Balance; The Barrel Effect
Does Fiscal Education Expenditure Promote the Common Prosperity of
Urban and Rural Residents?
—Empirical Evidence Based on Micro Household Survey Data
Jia Tingyue Wang Xiaohan Si Jichun
Abstract: This paper matches Chinese Household Income Project Suryey data with the fiscal education expenditure of municipal-level cities, and empirically examines the economic effects, mechanisms, and heterogeneity of fiscal education expenditure on the income gap between urban and rural residents. The study finds that increasing fiscal education expenditure effectively narrows the income gap between urban and rural residents, with a stronger effect in households with multiple children and lower parental education levels. Mechanism analysis shows that fiscal education expenditure gradually narrows the gap in education levels and years of schooling between urban and rural residents, promotes educational equity, enhances rural residents’ opportunities for formal employment, facilitates the transformation of rural residents’ identities from agricultural to non-agricultural, and reduces the gap in social insurance participation rates between urban and rural residents, thus achieving long-term improvement in the income gap between them. Based on this, fiscal policy should optimize and integrate urban and rural educational resources, improve educational quality, and implement targeted strategies, deepen the delegation of powers and expenditure responsibilities below the provincial level, innovate institutions, accelerate China’s transformation from a populous country to a human resources-rich country, and ultimately achieve common prosperity.
Keywords: Fiscal Education Expenditure; Human Capital; Urban-Rural Income Gap; Common Prosperity
Local Government Debt and the Improvement of Non-Farm Employment
Mao Jie Ren Zhanshang
Abstract: This study combines data from the China Family Panel Studies (CFPS) and macro-level data to empirically analyze the impact of local government debt on non-farm employment. The research findings indicate that local government debt significantly enhances non-farm employment, with revenue debt playing a predominant role. Furthermore, the study investigates the mechanisms through which local government debt promotes non-farm employment from both the labor supply and demand perspectives. It reveals that local government debt improves the supply capacity of rural labor for non-farm employment by enhancing transaction efficiency infrastructure and production efficiency infrastructure. Notably, revenue debt, particularly, attracts corporate investment and expands the demand for non-farm labor in relevant industries. Heterogeneity analysis demonstrates that the positive effect of local government debt on non-farm employment is more pronounced for rural residents, women, individuals with intermediate or lower skills, and young labor force. Additionally, the extended analysis suggests that local government debt positively influences residents’ job satisfaction, although it has not yet substantially impacted employment quality.
Keywords: Local Government Debt; Non-Farm Employment; Infrastructure; Enterprise Investment
Geographic Distance and the Allocation of Local Government Special Debt
Zhu Xingshu Hu Yue
Abstract: This article takes the special debt quota of cities in China from 2015 to 2022 and empirically tests the impact of geographical distance on debt quota. The results indicate that the quota of cities adjacent to provincial capital cities is significantly higher than that of other regions, and the distance effect has certain boundaries and is more pronounced in areas with high promotion incentives for officials, high fiscal revenue, and low implicit debt. The mechanism analysis shows that geographic distance mainly increases the level of quotas in neighboring areas through information transmission between vertical governments and rent-seeking activities. Further discussion reveals that “Interim Measures for the Administration of Allocation of New Local Government Debt Quota” clarified the allocation standards for quotas and corresponding punishment mechanisms, and to some extent corrected the biased allocation effect brought about by location advantages. This study provides a new perspective for promoting the improvement of the local government debt management system and provides inspiration for optimizing the allocation mechanism of local government debt quota.
Keywords: Geographic Distance; Quota Allocation; Information; Rent-Seeking
Environmental Protection Tax, Government Innovation Subsidy and Enterprises’ Green Innovation
Zhang Xiaoying Li Hongxia Ma Yan Tang Zijie
Abstract: This study employs a triple difference model to investigate the moderating effect of government innovation subsidies on the relationship between environmental protection tax reform and enterprises’ green innovation and the mechanism of moderating effect, based on data from A-shares listed manufacturing companies in China spanning from 2015 to 2020. The results indicate that government innovation subsidies positively moderate this relationship, primarily by alleviating the financing constraints imposed by environmental protection tax reform, thereby boosting R&D investment of enterprises. The results also show that environmental protection tax reform are more effective in fostering enterprises’ substantive green innovation rather than strategic green innovation with the moderating effect of government innovation subsidies. In addition, the moderating effect of government innovation subsidies is more pronounced in regions with lower financial development and weaker environmental penalties, as well as among non-key polluting and non-high-tech industrial enterprises. This study offers valuable insights for policymakers to enhance policy synergies and maximize their combined impact on promoting enterprises’ green innovation
Keywords: Enterprises’ Green Innovation; Environmental Protection Tax; Government Innovation Subsidy; Triple Difference
The Impact of Provincial Pooling on Pension Insurance Coverage
Cai Weixian Liu Mengya Zhu Di
Abstract: Expanding the coverage of pension insurance is a crucial measure for maintaining the stable operation of the pension insurance system. This study takes the provincial pooling reform of pension insurance as its focal point to examine the impact of such reform on the coverage of pension insurance. The findings indicate that provincial pooling can effectively enhance the coverage of pension insurance. This effect is closely associated with several factors, including policy implementation preconditions, implementation plans and outcomes, and implementation targets. Specifically, higher regulatory intensity, smaller municipal corporate bond scale, and a better labor protection environment contribute to more significant effects. Additionally, it is observed that lower costs of pension insurance and a clear responsibility sharing mechanism stimulate an increased supply of pension insurance. In terms of employee characteristics, provincial pooling primarily improves the demand for pension insurance of workers with greater mobility demands. The research conclusions presented in this paper are valuable for clarifying preparatory work related to pension pooling reform, understanding differences in effectiveness among various implementation plans, recognizing heterogeneous impacts on different groups, and facilitating further improvements in national pension insurance pooling schemes.
Keywords: Pension Coverage; Provincial Pooling; Pension Insurance Sustainability