The Impact Of Fiscal Decentralization And Soft Budget Constraint On The Scale Of Local Government Debt

The local government of our country has been an important force to promote the rapid economic growth.At the same time,the local government has actively or passively assumed a large scale of debt in order to promote the economic development of the region.With the continuous expansion of the government's debt scale,the government debt risk pressure is increasing.This trend will inevitably affect the normal development of local economy.Therefore,the research on the scale of local government debt and the policy suggestions based on the optimization of government government government debt scale are more valuable.Value and meaning.At present,there are few studies on the impact of fiscal decentralization and soft budget constraint on the scale of government borrowing,especially in empirical research.In order to put forward the practical significance and value of the policy recommendations,this paper uses the combination of normative analysis and empirical analysis,with the data of 31 provinces(cities)of 2003-2015 years as the analysis object,research on the influence of fiscal decentralization and budget soft constraints on the scale of government level government.Based on the achievements of the previous local government debt in the aspects of basic theory,experience introduction and solution,this paper first reviews the relevant domestic and foreign literature between the three and combs the theoretical basis and mechanism of the influence of fiscal decentralization and budget soft constraints on the scale of the government's debt scale.Use the mechanism.Then based on the panel data of all provinces(cities),the effects of financial decentralization and budget soft constraints on the scale of government debt are analyzed by the static and dynamic generalized moments(GMM).The results show that the influence of fiscal decentralization and soft budget constraints on the scale of government level government is positively related.In order to describe the relationship between the three more accurately,and take into account the persistent dynamic characteristics of the level government,the dynamic panel model of Hansen is used to carry out an empirical analysis.It is concluded that the influence of the soft budget constraint on the scale of the government's debt is based on the dual threshold of fiscal decentralization.The conclusion of the effect is that there are two thresholds of fiscal decentralization between the level of government level government and the soft budget constraints.When the level of fiscal decentralization is lower than the first threshold,the increase of the soft budget constraint reduces the scale of the government's debt raising.When the fiscal decentralization is between the two thresholds,the increase of the soft budget constraint stimulates the level of the level.With the expansion of the scale of government borrowing,when the fiscal decentralization is greater than second thresholds,the soft budget constraint has a greater positive impact on the scale of government borrowing.Finally,according to the results of the study,we put forward some relevant policy suggestions to further deepen the reform of China's fiscal decentralization system,the soft constraints of hardened budget and the reasonable adjustment of local financial and financial power to optimize the scale of local government debt in China.