Since the 1990s, China has pushed forward the province-managing-county (PMC) reform in some provinces as an experiment of fiscal decentralization. The reform provides a good opportunity to examine the impact of fiscal decentralization on fiscal behaviors of local governments in China. Using a...

The funding of basic education is provided via different schemes. In the United States, local sources had long been dominant; equity concerns later pulled in the state for resource equalization under constitutional considerations. Another scheme is the involvement of the central government. In...