{"title":"Incentives for local government expenditures on people’s livelihood: the role of high-speed rail","authors":"Xia Meng , Tao Ding , Haisen Wang","doi":"10.1016/j.seps.2023.101700","DOIUrl":null,"url":null,"abstract":"<div><p>Can high-speed rail (HSR) lines create effective incentives for local governments to supply public goods for people's livelihood? This paper builds a time-varying difference-in-differences (TVDID) model and uses 2002–2018 Chinese data. The empirical results show that HSR enhances the fiscal responsiveness of local governments and creates effective incentives for local governments' expenditures on education and medical/health care; however, this “HSR effect” does not significantly influence expenditures on social security or employment. The mechanism analysis shows that HSR has a significant amplification effect on interregional competition, specifically in terms of market access and human capital agglomeration. Notably, the opening of HSR lines forms a new “incentive-constraint” mechanism for local governments to supply public services for people's livelihood from both the supply and demand sides, and the fiscal and administrative capacities of local governments can strengthen the influence of HSR lines on the supply of public goods for people's livelihood.</p></div>","PeriodicalId":22033,"journal":{"name":"Socio-economic Planning Sciences","volume":"89 ","pages":"Article 101700"},"PeriodicalIF":6.2000,"publicationDate":"2023-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Socio-economic Planning Sciences","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0038012123002124","RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
Can high-speed rail (HSR) lines create effective incentives for local governments to supply public goods for people's livelihood? This paper builds a time-varying difference-in-differences (TVDID) model and uses 2002–2018 Chinese data. The empirical results show that HSR enhances the fiscal responsiveness of local governments and creates effective incentives for local governments' expenditures on education and medical/health care; however, this “HSR effect” does not significantly influence expenditures on social security or employment. The mechanism analysis shows that HSR has a significant amplification effect on interregional competition, specifically in terms of market access and human capital agglomeration. Notably, the opening of HSR lines forms a new “incentive-constraint” mechanism for local governments to supply public services for people's livelihood from both the supply and demand sides, and the fiscal and administrative capacities of local governments can strengthen the influence of HSR lines on the supply of public goods for people's livelihood.
期刊介绍:
Studies directed toward the more effective utilization of existing resources, e.g. mathematical programming models of health care delivery systems with relevance to more effective program design; systems analysis of fire outbreaks and its relevance to the location of fire stations; statistical analysis of the efficiency of a developing country economy or industry.
Studies relating to the interaction of various segments of society and technology, e.g. the effects of government health policies on the utilization and design of hospital facilities; the relationship between housing density and the demands on public transportation or other service facilities: patterns and implications of urban development and air or water pollution.
Studies devoted to the anticipations of and response to future needs for social, health and other human services, e.g. the relationship between industrial growth and the development of educational resources in affected areas; investigation of future demands for material and child health resources in a developing country; design of effective recycling in an urban setting.