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| An Empirical Study on the Effect of Debt Decentralization on Local Government Budget Discipline——Based on the Perspective of Local Government Bond Issuance Mechanism Reform |
| Jin Rongxue Hu Xiaoqian |
| School of Public Finance and Taxation， Zhongnan University of Economics and Law， Wuhan 430073 |
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Abstract Based on the panel data of 31 provinces from 2011 to 2017， taking the quasi-natural experiment of local government bond issuance mechanism reform as an example， this paper constructs a multi-period DID model to identify the impact of debt decentralization on local government budget discipline and related transmission mechanism. The results show that debt decentralization improves the effectiveness of local government budget discipline. Debt decentralization endows local governments with the decision-making power of debt financing， and enhances the financial autonomy of local governments. The debt management model with the matching of power and responsibility has strengthened the budget responsibility of local governments. Local governments actively adjusted the structure of fiscal expenditure， strengthened budgetary constraints and improved budget deficits. The effect of debt decentralization on the improvement of budget discipline is more significant in areas with low dependence on transfer payment and high degree of financial autonomy.
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Received: 18 March 2021
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2021, Vol. 60 
