Chinese Local Government's Behavior under Fiscal Decentralization and Non-Economic Public Goods Provision——Under the Viewpoint of New Institutional Economics

This paper makes use of the new institutional economics to study the performance of local government behavior under fiscal decentralization,and shows the relationship between non-economic public goods provision and local government behavior. We find that the local government is not interested to provide non-economic public goods under fiscal decentralization. Moreover,we develop a theoretical model to analyze how the local government under fiscal decentralization affects non-economic public goods,and find that fiscal competition between local governments has a negative impact on non-economic public goods provision,while local governance was a positive impact on non-economic public goods provision.