The Research on Strengthening Constraint Mechanism of Local Government Debt Financing in China: The Case Study of Bankruptcy Mechanism of Local Government in USA

By way of case analysis in this paper,it compared the differences from three aspects of the legislation,system construction and supervision and management between China and The United States in local government debt management,and draw lessons from the bankruptcy experience of local government in USA and the law of local government debt to discuss the China's local government debt management issues. We suggest some ideas,such as establishing and improve the early warning system and to enhance the strength of China's local government debt financing constraints,when the conditions ripped,we can try to introduce local government financial bankruptcy system; Establishing local government debt risk of party and government officials accountability system,to raise the cost of breach of default; Building the system of local government financial report and credit rating,this can form the local government debt market constraint mechanism effectively; Implementing the central government to local government debt administrative control mechanism,it can contain the moral risk of local government and so on.