How to reduce local government decision-making competition in China's new urbanization process

Purpose – The purpose of this paper is to analyze the impact of local government decision-making competition new urbanization, further to seek measures to weaken the negative effect of local government decision-making competition. Design/methodology/approach – This paper first puts forward the three paths which make local government decision-making competition: construction of new-style urbanization, economic development and construction of people’s livelihood and take China’s new-style urbanization as an example, the authors analyzed the internal mechanism of decision making of local government competition which caused by above three paths. Second, using the prospect theory, risk aversion theory and Cournot duopoly model, the authors analyzed how to avoid the local government decision-making competition and how to reduce the harm caused by local government decision-making competition. Findings – The central government can curb the appearance of local government competition strategy through regulating and...

[1]  Wenjuan Wu,et al.  Complex nonlinear dynamics and controlling chaos in a Cournot duopoly economic model , 2015 .

[2]  Eric Dubois,et al.  Yardstick competition: which neighbours matter? , 2010 .

[3]  Glen R. Waddell,et al.  Corruption, decentralization and yardstick competition , 2005 .

[4]  Vitaliy V. Kalashnikov,et al.  Application of the Cournot and Stackelberg Mixed Duopoly Models for Mexican Real Estate Market , 2012 .

[5]  Zhou Ye,et al.  Local Government Competition and Economic Growth , 2003 .

[6]  Martin Shields,et al.  Does government fragmentation enhance or hinder metropolitan economic growth , 2010 .

[7]  Ty Hawkins,et al.  Assessing the Promise of Jonathan Franzen's First Three Novels: A Rejection of "Refuge" , 2010 .

[8]  Elsayed Ahmed,et al.  On Modelling Advertisement in Cournot Duopoly , 1999 .

[9]  Liu Xingyun.  Tournament System,Promotion Game and Local Political Theatre , 2011 .

[10]  Leonzio Rizzo,et al.  Interaction between federal taxation and horizontal tax competition: theory and evidence from Canada , 2010 .

[11]  Vincenzo Scoppa,et al.  Effort Observability, Incentive Systems, and Organizational Forms , 2010 .

[12]  Randall G. Holcombe,et al.  The cartelization of local governments , 2011 .

[13]  Koichi Yamada,et al.  A Descriptive Decision-Making Model under Uncertainty: Combination of Dempster-Shafer Theory and Prospect Theory , 2013, Int. J. Uncertain. Fuzziness Knowl. Based Syst..

[14]  William D. Berry,et al.  A Strategic Theory of Policy Diffusion via Intergovernmental Competition , 2011 .

[15]  Yao Zhang,et al.  Risk decision analysis in emergency response: A method based on cumulative prospect theory , 2014, Comput. Oper. Res..

[16]  Teemu Lyytikäinen,et al.  Tax Competition Among Local Governments: Evidence from a Property Tax Reform in Finland , 2011 .

[17]  Lode Li.  Information Sharing in a Supply Chain with Horizontal Competition , 2002, Manag. Sci..

[18]  Yang Daka.  A Review of Research on Local Government Debts Based on Government Competition , 2014 .

[19]  Charles M. Tiebout.  A Pure Theory of Local Expenditures , 1956, Journal of Political Economy.

[20]  Thomas Langer,et al.  Can prospect theory be used to predict an investor’s willingness to pay? , 2013 .

[21]  C. Jinhua.  Decentralization,Intergovernmental Competition,and Economic Growth: A critical review , 2012 .

[22]  Huang Wen-hu.  Urban management:the special economic function of city government , 2006 .

[23]  Joseph E. Stiglitz,et al.  Principles of Financial Regulation : A Dynamic Portfolio Approach , 2001 .

[24]  Vladimir Kogan,et al.  Representation, competition, and institutional development in American local government , 2012 .

[25]  Aron Kiss.  Minimum taxes and repeated tax competition , 2012 .

[26]  Christopher V. Hawkins.  Competition and Cooperation: Local Government Joint Ventures for Economic Development , 2010 .

[27]  Meng Weidon.  Analysis on the "by-urbanization" Phenomenon and Its Countermeasures in the Process of the Rural Communities , 2011 .

[28]  Chen Li.  Causes and Governance of Regional Administrative Monopoly , 2014 .

[29]  Vincenzo Scoppa,et al.  Political competition and politician quality: evidence from Italian municipalities , 2011 .

[30]  Fabiana Rocha,et al.  Corruption and the size of government: causality tests for OECD and Latin American countries , 2010 .

[31]  Johannes Rincke,et al.  What Drives Corporate Tax Rates Down? A Reassessment of Globalization, Tax Competition, and Dynamic Adjustment to Shocks , 2009, SSRN Electronic Journal.

[32]  Jean Hindriks.  Political Failures and Intergovernmental Competition , 2012 .

[33]  M. Rothschild,et al.  Incumbent Behavior : Vote-Seeking , Tax-Setting , and Yardstick Competition , 2007 .

[34]  Erik Kaestner.  Competitive Governments An Economic Theory Of Politics And Public Finance , 2016 .