News Column

Findings from Renmin University of China Update Understanding of Accounting

June 21, 2014

By a News Reporter-Staff News Editor at Investment Weekly News -- Data detailed on Accounting have been presented. According to news reporting originating from Beijing, People's Republic of China, by VerticalNews editors, the research stated, "This paper examines how a fiscal equalization system affects the disciplining effect of competition for capital among heterogeneous regions in a decentralized economy."

Our news editors obtained a quote from the research from the Renmin University of China, "I build a model in which regions that are heterogeneous in initial endowments try to attract capital by competing public input that enhances the productivity of capital; meanwhile, a fiscal equalization system is imposed by the central government to reduce regional disparities in fiscal capacity. The key prediction, borne out in data from the German equalization system, is that while competition for capital strengthens discipline in the well-endowed regions, it weakens discipline in the poorly endowed regions."

According to the news editors, the research concluded: "However, a conventional equalization transfer scheme, common to many countries, can be effective in correcting the distortion driven by the heterogeneity of initial endowments across competing regions."

For more information on this research see: Does competition for capital discipline governments? The role of fiscal equalization. International Tax and Public Finance, 2014;21(3):345-374. International Tax and Public Finance can be contacted at: Springer, Van Godewijckstraat 30, 3311 Gz Dordrecht, Netherlands. (Springer -; International Tax and Public Finance -

The news editors report that additional information may be obtained by contacting Y.Z. Liu, Renmin Univ China, Sch Finance, China Financial Policy Res Center, Beijing 100872, People's Republic of China.

Keywords for this news article include: Asia, Beijing, Accounting, People's Republic of China

Our reports deliver fact-based news of research and discoveries from around the world. Copyright 2014, NewsRx LLC

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: Investment Weekly News

Story Tools Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters