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Can fiscal support reduce the income gap between urban and rural residents? An analysis based on heterogeneity and threshold effects

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  • Zhang, Fengyi
  • Guo, Ping
  • Fan, Xianxian

Abstract

This study uses data from 31 provinces in China between 2011 and 2022 to explore whether fiscal support can reduce the income gap between urban and rural residents, focusing on heterogeneity and threshold effects. The findings indicate that fiscal support significantly narrows the income disparity between urban and rural residents. Additionally, the impact of fiscal support on this income gap varies across different regions, demonstrating heterogeneity, and its effect exhibits a threshold effect that changes with the level of urbanization in the region.

Suggested Citation

  • Zhang, Fengyi & Guo, Ping & Fan, Xianxian, 2025. "Can fiscal support reduce the income gap between urban and rural residents? An analysis based on heterogeneity and threshold effects," Finance Research Letters, Elsevier, vol. 80(C).
    • Handle: RePEc:eee:finlet:v:80:y:2025:i:c:s1544612325006142
    DOI: 10.1016/j.frl.2025.107353
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    References listed on IDEAS

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    Cited by:

    1. Zhang, Xiaolei & Zhu, Yun & Hou, Aocheng, 2025. "Fiscal decentralization and urban-rural inequality of income acquisition opportunities: Micro evidence from China," Finance Research Letters, Elsevier, vol. 85(PA).
    2. Yanling Lu & Bo Zhong & Quan Fang, 2025. "Research on Fiscal Support for Agriculture, Green Agricultural Productivity, and the Urban–Rural Income Gap: A PVAR Approach," Sustainability, MDPI, vol. 17(12), pages 1-18, June.

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