The Study On China’s Efficiency Of Public Education Expenditure Under Fiscal Decentralization

With the continuous development of Chinese economic and system, China’s fiscal system is constantly improving.From fiscal centralization to tax reform in1994, all reflect the continuous development of China’s financial system.Implementation of fiscal decentralization theoretically gives more autonomy to local government, which can be more effective in promoting local development and improving the quality of local government on public services, thereby improving the quality of people’s life.Fiscal decentralization gives local government more autonomy, but less power for central government.In order to pursue economic growth, local government may reduce public service.Firstly, this paper introduces the theory of fiscal decentralization theory and public education expenditure theory.From the perspective of the human output, Super-SBM model is applied to measure and analyze the efficiency of public education expenditure of our Country, the provinces and three regions of China in1997-2011.The result shows that the efficiency of pubilc education expenditure shows a rising trend after2009across the Country.The efficiency of public education in every province of China are different.The general has a slight downward trend, in which the efficiency of education spending on the eastern part is overall higher than that in the central and western regions.Secondly, based on the threshold model, the data is used to study the effects of fiscal decentralization on the efficiency of public expenditure.Based on the efficiency, this paper supposes the degree of fiscal decentralization as the threshold variable to establish the efficiency of public education expenditure panel threshold regression model with the constraint of fiscal decentralization.Through three threshold regression model, this paper estimates the relationship between fiscal decentralization and efficiency of public education expenditure in different degree of fiscal decentralization intervals.The result shows that fiscal decentralization plays a negative role to the efficiency of public education expenditure.And there are different contributions in different degree of fiscal decentralization.Finally, according to the results of empirical analysis, some related policy recommendations are proposed to improve the efficiency of public education expenditure.