Empirical Study on the Intergovernmental Assignments of Public Revenue and Expenditure Responsibility and Local Public Services Equalization

The papaer studies the impacts of intergovernmental assignments of public revenue and expenditure responsibility on the local public services development and equalization since the reform and opening-up using the spatial panel data model.It shows the distinct asymmetry impacts of intergovernmental assignments of public revenue and expenditure responsibility: the impacts of assignments of public revenue responsibility is not obvious,while the assignments of public expenditure responsibility has significant positive influnce on the transportion infrastructure and medical and health services,but has inconspicuous influnce on the basic education.Since the reform of tax sharing in 1994,the influnces of assignments of public revenue and expenditure responsibility on transportion infrastructure have been increased significantly,while decreased much on medical and health services.The analysis of the opposite fact indicates that the reform of fiscal contracting system is detrimental to local public services equalization especially to transportion infrastructure services equalization;the reform of tax sharing in 1994 boosts the public transportion infrastructure,medical and health services equalization,but not conducive to public basic education equalization.