| Tax reform on the central and local fiscal revenue pattern has a profound impact from 1994,the local level of fiscal revenue accounted for the proportion of total fiscal revenue declining,financial resources gradually to the central concentration.As an important part of administrative system,County is not only bear the basic service responsibilities like education,medical hygiene and social security,but also bear some of the responsibility to support rural spending.The departure of financial power and authority exacerbate the financial burden of the county government,resulting in lack of county-level financial resources and basic public service.However,under the influence of the weakening of demand and structural adjustment under the "new normal" period,the decrease of investment rate and the decrease of economic growth further aggravated the financial burden of the county government,which greatly restr:icte the social welfare、economic growth and other aspects of financial investment.On the one hand,the level of public service at the county level in our country is relatively low,and the requirement of improving the quality of public service to promote the improvement of social welfare is very urgent.On the other hand,promoting economic development is still the core task of county government,how to promote county economic growth is not only the key to alleviate the financial burden of the county but also improve the sustainability of economic development.Therefore,to clarify the relationship among the county-level financial burden,public service and economic growth will help the county-level governments to improve their financial regulation capacity and formulate fiscal policies that take into account the dual objectives of social welfare and economic growth,achieving long-term economic and social stability.Based on the traditional political and economic theoretical model,this paper takes into account the two characteristics of the production and consumption of public service variables which will not only affect the output of the enterprise sector but also the utility of the representative family,thus we can add it into the production function and consumption function of the residents.In addition,we construct a dynamic general equilibrium model including financial burden,public service and economic growth,adding the financial burden equation to the government department,and setting the mechanism of financial burden effect on the economic growth and public service supply.The simulation results show that fiscal expenditure not only contributes to economic growth through stimulating consumption and investment,but also significantly improves the level of public service when the financial burden is small or moderate.On the contrary,the high financial burden makes the marginal contribution of fiscal expenditure to the public service gradually reduced,and the adverse effects of the financial burden on economic growth continuous accumulation,and even lower the level of economic output.Furthermore,based on the data of the 1966 county,we construct the model of the panel simultaneous equation.The financial burden,public service and economic growth variables are used as endogenous variables,and the square of financial burden is introduced in the public service and economic growth equation in oder to analyze the effects of financial burdens on public services and economic growth.At the same time,taking into account the correlation between public services and economic growth,we can break down the two indirect effects of“financial burden→public service→economic growth" and "financial burden→economic growth→ public service".The empirical results show that with the increase of financial burden,the impact of county-level financial burden on economic growth and public service is changed from positive to negative.The results show that the indirect effect and total effect of fiscal burden is in the same direction.Finally,in order to test the robustness of the model and the credibility of the empirical results,this paper divides the basic public service into three categories:education、health care and social security,exploring the relationship between financial burden、economic growth and public service.The results of robustness test show that the impact of financial burden on basic education,health care and social security is consistent with public service in transmission direction.Among them,the smaller or moderate financial burden will promote the improvement of different types of public services,on the contrary,too large financial burden will play a role in inhibiting.The possible innovations of this paper are as follows:(1)Considering the heterogeneity between residents’ preference for public service and the fact that the county government is the main body of public service supply,it will be more accurate when based on panel data of 1966 counties in 2002-2003.(2)In this paper,we innovative use panel simultaneous equation to incorporate financial burden,public service and economic growth into a model framework,eliminating the internal disturbance between public service and economic growth.(3)Based on the empirical model,we tries to decompose the indirect way of financial burden on economic growth and public service.In summary,as economic development into the "new normal" period,the county-level financial burden play a key role in improving the level of economic and public services,only a modest range of financial burden,can give full use to economic growth and the contribution of public service,that is,in the development of budgets,our county-level government need to take full account of the impact of financial burden on the economic policy and to determine a reasonable level of financial burden.Starting from the fiscal decentralization,clear the financial functions of all levels of government,and delineate the power between governments at all levels.On the other hand,we can rearrange the central and local,as well as the allocation of taxes under the province to ensure that the county level revenue sources.In addition,to further improve the financial transfer payment system,and we should perfect transfer payment system,and give full consideration to areas where the financial burden is large.Break the cumulative cycle of expansion of fiscal expenditure and financial burden,and formate the bidirectional effect between public services and economic growth,enhancing economic growth and welfare sustainability. |
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