Does an Elected Leader Have Incentives to Provide Public Goods with Future Returns? –Evidence from China
This paper examines changes in the allocation of public funds between production related public goods (PRPGs) and labour augmenting public goods (LAPGs) once elected village leaders replaced an appointment system. We derive a two-period theoretical model in which the interest of appointed leaders in short economic development leads to allocate all public resources into PRPGs in the first period. In contrast, elected leaders have greater incentives to reflect the interest of electorates by allocating public resources to maximize their two-period revenues. The model predicts that elections lead to an increase in the provision level of LAPGs and a decrease in PRPGs in the first period, if the first-period allocation equilibrium of appointed leaders is away from the allocation mix in maximization of the two-period revenues. A panel dataset of 71 villages for the period of 1993-2000 is used to examine these two predictions. The results show that the elections increased the provision level of public health (LAPGs), but had no effects on irrigation facilities and paved roads (PRPGs).
|Date of creation:||14 Jun 2012|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.iaae-agecon.org/|
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:ags:iaae12:125591. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.