Efficient Scale of Local Government in China: Quantile Regression Approach to County-Level Data
We investigate the effects of urban and rural populations and area sizes on the expenditures of the prefecture-level local government. We found the following three results. The first relates to the expenditure for urban populations. At around 220,000 people, per capita local government expenditure is minimized in our simulation. The second is that the expenditure for rural populations is proportional to the population size. The third finding is that the expenditure in accordance with the areas is also proportional to the area size. This cost structure is the reason why China fs recent rapid urbanization increases prefectural government fs fiscal distress.
|Date of creation:||Apr 2014|
|Contact details of provider:|| Web page: http://www2.econ.osaka-u.ac.jp/library/global/e_HP/e_g_shiryo.html|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Tao, Hung-Lin & Yuan, Ming-Ching, 2005. "Optimal scale of a public elementary school with commuting costs--a case study of Taipei county," Economics of Education Review, Elsevier, vol. 24(4), pages 407-416, August.
- Borcherding, Thomas E & Deacon, Robert T, 1972. "The Demand for the Services of Non-Federal Governments," American Economic Review, American Economic Association, vol. 62(5), pages 891-901, December.
- Lichtenberg, Erik & Ding, Chengri, 2009.
"Local officials as land developers: Urban spatial expansion in China,"
Journal of Urban Economics,
Elsevier, vol. 66(1), pages 57-64, July.
- Lichtenberg, Erik & Ding, Chengri, 2008. "Local Officials as Land Developers: Urban Spatial Expansion in China," Working Papers 6834, University of Maryland, Department of Agricultural and Resource Economics.
- Craig, Steven G., 1987. "The impact of congestion on local public good production," Journal of Public Economics, Elsevier, vol. 32(3), pages 331-353, April.
- Shelton, Cameron A., 2007. "The size and composition of government expenditure," Journal of Public Economics, Elsevier, vol. 91(11-12), pages 2230-2260, December.
- Bodkin, Ronald G & Conklin, David W, 1971. "Scale and Other Determinants of Municipal Government Expenditures in Ontario: A Quantitative Analysis," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 12(3), pages 465-481, October.
- Hochman, Oded & Pines, David & Thisse, Jacques-Francois, 1995. "On the Optimal Structure of Local Governments," American Economic Review, American Economic Association, vol. 85(5), pages 1224-1240, December.
- Hochman, O. & Pines, D. & Thisse, J.-F., "undated". "On the optimal structure of local governments," CORE Discussion Papers RP 1185, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Hochman, Oded & Pines, David & Thisse, Jacques-François, 1994. "On the Optimal Structure of Local Governments," CEPR Discussion Papers 899, C.E.P.R. Discussion Papers.
- Koenker,Roger, 2005. "Quantile Regression," Cambridge Books, Cambridge University Press, number 9780521845731.
- Roger Koenker & Kevin F. Hallock, 2001. "Quantile Regression," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 143-156, Fall.
- Koenker,Roger, 2005. "Quantile Regression," Cambridge Books, Cambridge University Press, number 9780521608275, February.
- David N King & Yue Ma, 2000. "Local authority size in theory and practice," Environment and Planning C: Government and Policy, Pion Ltd, London, vol. 18(3), pages 255-270, June.
- David N King & Yue Ma, 2000. "Local Authority Size in Theory and Practice," Environment and Planning C, , vol. 18(3), pages 255-270, June.
- Leigh Drake & Richard Simper, 2002. "X-efficiency and scale economies in policing: a comparative study using the distribution free approach and DEA," Applied Economics, Taylor & Francis Journals, vol. 34(15), pages 1859-1870.
- Duncombe, William & Miner, Jerry & Ruggiero, John, 1995. "Potential cost savings from school district consolidation: A case study of New York," Economics of Education Review, Elsevier, vol. 14(3), pages 265-284, September.
- Chun-Chung Au & J. Vernon Henderson, 2006. "Are Chinese Cities Too Small?," Review of Economic Studies, Oxford University Press, vol. 73(3), pages 549-576.
- World Bank, 2007. "China : Improving Rural Public Finance for the Harmonious Society," World Bank Other Operational Studies 7664, The World Bank.
- Gyimah-Brempong, Kwabena, 1989. "Production of Public Safety: Are Socioeconomic Characteristics of Local Communities Important Factors?," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 4(1), pages 57-71, Jan.-Mar..
- Baleiras, Rui Nuno, 2001. "To Fragment or to Consolidate Jurisdictions: the Optimal Architecture of Government," FEUNL Working Paper Series wp401, Universidade Nova de Lisboa, Faculdade de Economia.
- Steven G. Craig & Eric J. Heikkila, 1989. "Urban Safety in Vancouver: Allocation and Production of a Congestible Public Good," Canadian Journal of Economics, Canadian Economics Association, vol. 22(4), pages 867-884, November.
- Andrews, Matthew & Duncombe, William & Yinger, John, 2002. "Revisiting economies of size in American education: are we any closer to a consensus?," Economics of Education Review, Elsevier, vol. 21(3), pages 245-262, June.
- Cameron A. Shelton, 2007. "The Size and Composition of Government Expenditure," Wesleyan Economics Working Papers 2007-002, Wesleyan University, Department of Economics.
- Roy Bahl & Jorge Martinez-Vazquez, 2003. "Fiscal Federalism and Economic Reform in China," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0313, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
- Edwards, John H. Y., 1990. "Congestion function specification and the "publicness" of local public goods," Journal of Urban Economics, Elsevier, vol. 27(1), pages 80-96, January.
- Tsui, Kai-yuen, 2005. "Local tax system, intergovernmental transfers and China's local fiscal disparities," Journal of Comparative Economics, Elsevier, vol. 33(1), pages 173-196, March.
- John I Carruthers & Gudmundur F Ulfarsson, 2003. "Urban sprawl and the cost of public services," Environment and Planning B: Planning and Design, Pion Ltd, London, vol. 30(4), pages 503-522, July. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:osk:wpaper:1415. 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: (Atsuko SUZUKI)
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.