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Fiscal Policy, Regional Disparity and Poverty in China: A General Equilibrium ApproachWang Liaffiliation not provided to SSRN Xuesong LiChinese Academy of Social Sciences (CASS) - Institute of Quantitative & Technical Economics Wenbo Wangaffiliation not provided to SSRN Zhou Guangbaoaffiliation not provided to SSRN October 12, 2010 MPIA Working Paper No. 2010-11 Abstract: The main objective of this research is to analyze the effects of the fiscal dimension of China’s government transfer and preferential tax policy on regional income disparity and poverty reduction. Using a computable general equilibrium model with a three-region component, we find that the preferential tax policy on the eastern coastal region of China has a significant effect on household income, as well as on the FGT indicator. The simulation results suggest that tax policy is a more effective tool to counter against China’s regional disparity than government transfer.
Number of Pages in PDF File: 32 Keywords: China, Regional Disparity, Fiscal Policy, Government Transfer, Preferential Policy, Poverty, CGE, FGT JEL Classification: D58, R13, H24, H32, H53 working papers seriesDate posted: November 16, 2010Suggested CitationContact Information
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