Fiscal incentives are closely related to extra-budgetary revenues.

• Position: Conferences - Brief Article

Fiscal incentives are closely related to extra-budgetary revenues. Using their definition, Ping and Bei explore the effects of "fiscal incentives" under decentralization on the responsiveness of public good provision to real local needs. China could have some special problems with fiscal decentralization: first, with a huge amount of extra-budgetary revenue, the size of local government could expand, resulting in a heavier burden on local citizens and peasants. Second, there may be...