A Review of Research on Local Government Debts Based on Government Competition

Unlike most of the literature focusing on the local government debt from the view of tax reform,this paper,based on the theory of government competition,inquiries the local government debt problem from the following four aspects: the provision of public goods,the local government's operation under debt,analysis of government competition and local government under game theory,debt risk prevention. This paper summarized the mechanism of government competition's effect on local government debt and elaborated the influence of from the top "yardstick competition",government's pursuit of financial resources and soft budget constrain on local government debt and looked forward to the future study of local government debt.