The Research On Spatial Fiscal Issues

Spatial-fiscal research is a recently-emerged and cutting-edge subject in the field of public finance and cameralistics. By the generalized definition, given by this paper, spatial-fiscal problems include spatial-fiscal behaviours such as trans-regional allocation of public economic resource, which behaved by different governmental sectors and based on different kind of spatial dependencies in a certain region, and the regulary activities towards the spatial-fiscal behaviours correspondingly. Spatial factor isn’t connected specifically with geographic features, administrative region or economic zone, but it is surely a theoretical concept with abstract connotation and concrete extension especially refers to some inherent spatial attributes and specific extrinsic spatial effects. The inherent spatial attributes is as indispensable as time, while its external influences is called spatial effects. In the view of empirical study, by spatial econometrics term, spatial effects could be interpreted as spatial dependencies under the different spatial weight matrix, also mean that the spatial-fiscal behaviour or trans-regional allocation of public economic resource is confronted with different transaction cost in the view of theoretical study in this paper. Furthermore, due to the existence and inconsistency of generalized spatial transaction cost, inter-regional fiscal differences will inevitably exist in the real and unsmooth economic system, which could be meatured, estimated and tested by proper empirical methods, and concreted as a fiscal model cooperated with innovation of paradigm and study methods.As a preliminary experiment, statistical data of China’s 31 provinces are picked as empirical samples. Because the spatial attributes and effects of fiscal behaviours seem to be reflected easier and more complete in such a vast territory with regional diversity and economic gap. Besides, combined with national conditions and characteristics of China’s political and economic system, this spatial-fiscal modeling could explain more and guide practically in the real. On the base of empirial study, this paper tries to put the spatial-fiscal modeling into development and application, and provide a concrete conceivement of fiscal subzone with institutional improvement at the level of regulation. The core academic idea of this paper is that the spatial attributes and spatial effects should be attributed to inter-regional fiscal differences, so as to analyze, control, coordinate and regulate the differences according to the general spatial transaction cost in the setting of fiscal decentralization and competition, and the setting of fiscal subarea, coordination and cooperation. By maintaining the differences in a proper degree, fiscal policies from different region or subzone should be integrated to a possible equilibrium with basic public goods and services relatively equalized. Although, the theoretical paradigm and empirical methods of this dissertation are partly different from traditional studies of cameralistics and public economics, the basic fiscal theories inherited and the stance of this research aims at are definitely in common. In this point of view, this dissertation prominently highlights a concept of development in the coordination of non-equilibria with inclusiveness and innovativeness. This dissertation is divided into seven chapters:As introduction, the first chapter raises the problem and illustrates the background, significance, logic layers and structure, and so on.Chapter 2 systematically defines the elementary concept and illustrates basic fators, distinguishes the general & special objects of spatial fiscal research, critically inherits the traditional theoretical paradigm and melts with the framework of spatial economics, to explore a possible way of fiscal modeling with spatial transaction cost. At the end of this chapter, spatial statistics and spatial econometrics are introduced as empirical method and analytical tool, in coordination with the theoretical methods at the meantime.Chapter 3 takes fiscal decentralization with Chinese characteristics as a very important system background to analyze China’s fiscal and public economic problems, which is also considered as a sort of inter-regional relative comparative advantages. Because many sides of fiscal management are involved in the arrangement of fiscal decentralization, and almost every singal province has a unique system, it seems that a multi-demensional evaluation index system can provide more fruitful information than a simplex evaluation. Based on this, comprehensively applying classical and spatial eonometrics methods, the provincial fiscal decentralized indexes are visualized to show the spatial dependency and heterogeneity between provinces or regions.Chapter 4 consists of two parts. The first part disassembles and analyzes the general fiscal differences between provinces and economic regions, using normative fiscal data. In the view of liquid tax sources allocation, the second part analyzes the partial fiscal differences, which are considered as a part of general fiscal differences and seem to have a possible core-periphery structure. By building up a simple spatial-lagged model to evaluate the causes of core-periphery structure and test the existence of spatial economic mechanism, the fiscal differences are transformed into not only a problem of revenue and expenditure but also some endogenic factors from spatial economic very largely.Chapter 5 is a model of fiscal intervention and competition in a mechanism of spatial economic. Firstly, combined with the characteristics of China’s finance and tax system, fiscal variables of authoritarian regime are theoretically abstracted into the Core periphery model to analyze the impact of taxes and subsidies on manufacture, expenditure and the market equilibrium. On base of this, the further discussion focuses on the asymmetric earnings from inter-regional fiscal competition arranged by fiscal decentralization, and the influences on the degrees of trading freedom that also stand for different transaction cost from different trading direction. In a perspective of fairness, this model even discusses a threshold condition with tax changes on the equilibrium of inter-regional public goods spillover. By numerical simulation on dynamic relations of tax, subsidy, salary and industry share, the model preliminarily uncovers a possible point of discretionary choice and some sort of phenomenons such as market segmentation and mild disconnection.Chapter 6 is an extensional model based on chapter 5. Aiming at the ubiquitous asymmetry and non-equilibrium of real market and regional economy, and considering the functions of public finance and its political goals, chapter 6 mainly discusses how to regulate and control inter-regional differences by fiscal tools in the economy of agglomeration and dispersion. Especially on the stability and its constraint condition of fiscal regulation and control, the model focuses, while the flowing productive factors or economic resources are allocated spatially. But, what if the constraint condition is broken so that the fiscal differences inter-regional are broadened, how to coordinate unbalancedly? So it puts up with a suggestion on transfer payments system and fiscal cooperation in the principle of compensation, additionally explains the applicability and possible expansions of the model.Chapter 7 presents a conceivement and design of fiscal subzone with inter-regional synergy and public regulation. Based on description of zoning profile and relevant facts, this chapter deeply analyzes the internal incentives and practical forms, further proposes possible ways of upgrading fiscal coordination and synergy with proper regulation, in the setting of fiscal decentralization and subzone and the market-oriented stimulus. Specifically speaking, on the one hand fiscal equalization measures oriented by factor analysis should be implemented to harden the budget constraint, for the other hand fiscal externalities should be rectified to regulate the soft budget constraints.