The Logic of Fiscal Reforms

Download or read book The Logic of Fiscal Reforms written by Jing Zhan and published by . This book was released on 2006 with total page 640 pages. Available in PDF, EPUB and Kindle. Book excerpt: I treat both central and local governments as rational decision-makers that interacted with each other strategically within a principal-agent framework. Both central and local governments had their own agendas, and they tried to maximize their interests. Unable to fully control the local agent, the central principal needed to construct an optimal incentive structure to reconcile the often-conflicting central and local interests and to achieve an optimal outcome for both parties.