Research in Infrastructure Financial with Government Guarantees of Prestige Model

Abstract

Financing of the infrastructure is always a focus and also it is difficult for the government, espacially the local government which is not rich. In the processing of Infrastructure construction, the government's guarantee plays an important role. Government may be charged with contingent expenses.Based on prestige model, the paper compare the government's the behavior with and without the pressure of financial constraints.And the paper arrive at a conclusion that the government's finance is very important to determine the government's behavior.