Du, Julan; He, Qing; Rui, Oliver M. - Hong Kong Institute for Monetary Research (HKIMR), … - 2011
This paper decomposes consumption risk sharing among provinces in China over the 1980-2007 period. We find that 9.4 percent of the shocks to gross provincial product are smoothed by the interprovincial fiscal transfer system. This system also cushions a relatively large fraction of the...