Estimating local fiscal multipliers using political connections

主讲人: Rong Li
主讲人简介:

Associate Professor, Renmin University of China. http://sf.ruc.edu.cn/info/1241/8097.htm

 

主持人: Dingming Liu
简介:

We use political connections between the central and local governments of China to identify the impact of government spending on the private sector. Our key innovation is to use changes in ministers of Chinese State Council as a source of exogenous variation in city-level intergovernmental transfers and hence fiscal expenditures. We find: (1) the local fiscal multiplier is estimated around 3.88 and there are no significant spillover effects; (2) local effective tax rates do not respond to such fiscal expansions; (3) private firms, instead of state owned enterprises (SOEs), are benefited more from such fiscal shocks; (4) the increase of output comes from firms’ employment expansions rather than capital investments. Our results contrast the conventional view that Chinese fiscal expansion works through SOEs, suggesting new considerations in evaluating the impact of government expenditure.

时间: 2019-04-25(Thursday)16:40-18:00
地点: N302, Econ Building
期数: 高级经济学系列讲座19年春季学期第六讲(总第420讲)
类型: 系列讲座

联系方式

厦门大学经济学院

联系电话:潘老师 0592-2180524

E-mail:cjxy@xmu.edu.cn

厦门大学王亚南经济研究院

联系电话:吴老师 0592-2186170

E-mail:antingwu@xmu.edu.cn

经济学科联合双硕士项目咨询

联系电话:鲍老师 0592-2181269

E-mail:wpbao.wise@gmail.com