Two-way Interactive Effect Between Financial Pressure & Public Service Charges

Yang Le

doi:doi:10.11648/j.eco.20190804.14

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Two-way Interactive Effect Between Financial Pressure & Public Service Charges

Yang Le

Published in Economics (Volume 8, Issue 4)

Received: 28 October 2019 Accepted: 18 November 2019 Published: 21 November 2019

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Abstract

After the reform of the tax system, with the upward movement of financial power and the decentralization of power, the financial pressure of local governments in China has become increasingly prominent. As the previous model concluded, fiscal pressure may be the driving force behind the increase in local government public service charges. Therefore, it is necessary to study the interaction between financial pressure and public service charges. In this paper, it mainly researches two-way interactive effect between financial pressure and public service charges. The data of 31 provinces in China from 1999 to 2017 was used to construct the simultaneous equations model for fiscal pressure and public service charges, and then the empirical test was carried out for the interactive effect between the two with 3sls method. The research results show shown that there is an interactive effect between fiscal pressure and public service charges. That is, the public service charges is increased with the increase of fiscal pressures, explaining that when the government is facing financial pressure, the government will look for public service charges to make up for the gap in fiscal revenue and expenditure. The fiscal pressure is decreased with the increase of public service charges, explaining that public service charges are an effective way to ease financial pressure. In addition, the effect degree of the control variables related to financial autonomy and public service charges was analyzed in this paper.

Published in	Economics (Volume 8, Issue 4)
DOI	10.11648/j.eco.20190804.14
Page(s)	149-155
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2019. Published by Science Publishing Group

Keywords

Fiscal Pressure, Public Service Charges, Two-way Interactive Effect

References

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APA Style

Yang Le. (2019). Two-way Interactive Effect Between Financial Pressure & Public Service Charges. Economics, 8(4), 149-155. https://doi.org/10.11648/j.eco.20190804.14

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ACS Style

Yang Le. Two-way Interactive Effect Between Financial Pressure & Public Service Charges. Economics. 2019, 8(4), 149-155. doi: 10.11648/j.eco.20190804.14

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AMA Style

Yang Le. Two-way Interactive Effect Between Financial Pressure & Public Service Charges. Economics. 2019;8(4):149-155. doi: 10.11648/j.eco.20190804.14

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@article{10.11648/j.eco.20190804.14,
  author = {Yang Le},
  title = {Two-way Interactive Effect Between Financial Pressure & Public Service Charges},
  journal = {Economics},
  volume = {8},
  number = {4},
  pages = {149-155},
  doi = {10.11648/j.eco.20190804.14},
  url = {https://doi.org/10.11648/j.eco.20190804.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.eco.20190804.14},
  abstract = {After the reform of the tax system, with the upward movement of financial power and the decentralization of power, the financial pressure of local governments in China has become increasingly prominent. As the previous model concluded, fiscal pressure may be the driving force behind the increase in local government public service charges. Therefore, it is necessary to study the interaction between financial pressure and public service charges. In this paper, it mainly researches two-way interactive effect between financial pressure and public service charges. The data of 31 provinces in China from 1999 to 2017 was used to construct the simultaneous equations model for fiscal pressure and public service charges, and then the empirical test was carried out for the interactive effect between the two with 3sls method. The research results show shown that there is an interactive effect between fiscal pressure and public service charges. That is, the public service charges is increased with the increase of fiscal pressures, explaining that when the government is facing financial pressure, the government will look for public service charges to make up for the gap in fiscal revenue and expenditure. The fiscal pressure is decreased with the increase of public service charges, explaining that public service charges are an effective way to ease financial pressure. In addition, the effect degree of the control variables related to financial autonomy and public service charges was analyzed in this paper.},
 year = {2019}
}

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TY  - JOUR
T1  - Two-way Interactive Effect Between Financial Pressure & Public Service Charges
AU  - Yang Le
Y1  - 2019/11/21
PY  - 2019
N1  - https://doi.org/10.11648/j.eco.20190804.14
DO  - 10.11648/j.eco.20190804.14
T2  - Economics
JF  - Economics
JO  - Economics
SP  - 149
EP  - 155
PB  - Science Publishing Group
SN  - 2376-6603
UR  - https://doi.org/10.11648/j.eco.20190804.14
AB  - After the reform of the tax system, with the upward movement of financial power and the decentralization of power, the financial pressure of local governments in China has become increasingly prominent. As the previous model concluded, fiscal pressure may be the driving force behind the increase in local government public service charges. Therefore, it is necessary to study the interaction between financial pressure and public service charges. In this paper, it mainly researches two-way interactive effect between financial pressure and public service charges. The data of 31 provinces in China from 1999 to 2017 was used to construct the simultaneous equations model for fiscal pressure and public service charges, and then the empirical test was carried out for the interactive effect between the two with 3sls method. The research results show shown that there is an interactive effect between fiscal pressure and public service charges. That is, the public service charges is increased with the increase of fiscal pressures, explaining that when the government is facing financial pressure, the government will look for public service charges to make up for the gap in fiscal revenue and expenditure. The fiscal pressure is decreased with the increase of public service charges, explaining that public service charges are an effective way to ease financial pressure. In addition, the effect degree of the control variables related to financial autonomy and public service charges was analyzed in this paper.
VL  - 8
IS  - 4
ER  -

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Author Information

Yang Le

School of Public Finance and Tax, Central University of Finance and Economics, Beijing, China

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Plain Text BibTeX RIS

APA Style

Yang Le. (2019). Two-way Interactive Effect Between Financial Pressure & Public Service Charges. Economics, 8(4), 149-155. https://doi.org/10.11648/j.eco.20190804.14

Copy | Download

ACS Style

Yang Le. Two-way Interactive Effect Between Financial Pressure & Public Service Charges. Economics. 2019, 8(4), 149-155. doi: 10.11648/j.eco.20190804.14

Copy | Download

AMA Style

Yang Le. Two-way Interactive Effect Between Financial Pressure & Public Service Charges. Economics. 2019;8(4):149-155. doi: 10.11648/j.eco.20190804.14

Copy | Download

@article{10.11648/j.eco.20190804.14,
  author = {Yang Le},
  title = {Two-way Interactive Effect Between Financial Pressure & Public Service Charges},
  journal = {Economics},
  volume = {8},
  number = {4},
  pages = {149-155},
  doi = {10.11648/j.eco.20190804.14},
  url = {https://doi.org/10.11648/j.eco.20190804.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.eco.20190804.14},
  abstract = {After the reform of the tax system, with the upward movement of financial power and the decentralization of power, the financial pressure of local governments in China has become increasingly prominent. As the previous model concluded, fiscal pressure may be the driving force behind the increase in local government public service charges. Therefore, it is necessary to study the interaction between financial pressure and public service charges. In this paper, it mainly researches two-way interactive effect between financial pressure and public service charges. The data of 31 provinces in China from 1999 to 2017 was used to construct the simultaneous equations model for fiscal pressure and public service charges, and then the empirical test was carried out for the interactive effect between the two with 3sls method. The research results show shown that there is an interactive effect between fiscal pressure and public service charges. That is, the public service charges is increased with the increase of fiscal pressures, explaining that when the government is facing financial pressure, the government will look for public service charges to make up for the gap in fiscal revenue and expenditure. The fiscal pressure is decreased with the increase of public service charges, explaining that public service charges are an effective way to ease financial pressure. In addition, the effect degree of the control variables related to financial autonomy and public service charges was analyzed in this paper.},
 year = {2019}
}

Copy | Download

TY  - JOUR
T1  - Two-way Interactive Effect Between Financial Pressure & Public Service Charges
AU  - Yang Le
Y1  - 2019/11/21
PY  - 2019
N1  - https://doi.org/10.11648/j.eco.20190804.14
DO  - 10.11648/j.eco.20190804.14
T2  - Economics
JF  - Economics
JO  - Economics
SP  - 149
EP  - 155
PB  - Science Publishing Group
SN  - 2376-6603
UR  - https://doi.org/10.11648/j.eco.20190804.14
AB  - After the reform of the tax system, with the upward movement of financial power and the decentralization of power, the financial pressure of local governments in China has become increasingly prominent. As the previous model concluded, fiscal pressure may be the driving force behind the increase in local government public service charges. Therefore, it is necessary to study the interaction between financial pressure and public service charges. In this paper, it mainly researches two-way interactive effect between financial pressure and public service charges. The data of 31 provinces in China from 1999 to 2017 was used to construct the simultaneous equations model for fiscal pressure and public service charges, and then the empirical test was carried out for the interactive effect between the two with 3sls method. The research results show shown that there is an interactive effect between fiscal pressure and public service charges. That is, the public service charges is increased with the increase of fiscal pressures, explaining that when the government is facing financial pressure, the government will look for public service charges to make up for the gap in fiscal revenue and expenditure. The fiscal pressure is decreased with the increase of public service charges, explaining that public service charges are an effective way to ease financial pressure. In addition, the effect degree of the control variables related to financial autonomy and public service charges was analyzed in this paper.
VL  - 8
IS  - 4
ER  -

Copy | Download