Title: Regional Difference, Reverse Fiscal Mechanism and Urban-rural Income Gap——Evidence from Dynamic Panel and Threshold Panel Models
Abstract: Based on the perspective of public finance budget, reverse fiscal mechanism makes burden exceed earning to farmers,and the average reversion degree during 2000-2012 is 20.99%. But in recent years, this mechanism is going into reverse since China implemented the policy of supporting agriculture and benefiting farmers. Under this mechanism, urban-rural income gap is convergent along with the tendency of decreasing. What's more, the relationship of fiscal support for agricultural and urban-rural income gap has a feature of nonlinearity: when the degree of reverse fiscal mechanism is below 13.87%, fiscal support for agricultural will narrow the urban-rural income gap obviously. Otherwise, it is not conducive to narrow the income gap for the urban-rural structural problems.
Publication Year: 2014
Publication Date: 2014-01-01
Language: en
Type: article
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