To What Extent Financial Autonomy Affects Social Security Expenditure

DOI

10.2991/assehr.k.210519.250How to use a DOI?

Keywords

Fiscal autonomy, social security expenditure, the flypaper effect

Abstract

Social security expenditure is affected by many factors. According to the ‘ the flypaper effect ‘ and public choice theory, it can be concluded that the high financial transfer payment of the superior government will expand the local fiscal expenditure, and the local governments have the motivation to increase fiscal expenditure in order to obtain more transfer payments. However, if different fiscal expenditure items are considered, such as social security expenditure, this effect may change. In this regard, this paper uses fiscal autonomy to express the dependence of local governments on superior transfer payments, and selects panel data from 2009 to 2018 to empirically test the social security expenditure of 31 provinces in China. The results show that fiscal autonomy has a negative impact on social security expenditure, but this impact is not particularly large. The social security expenditure of a province is mainly related to local economic development level, aging degree, unemployment rate and other factors.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Ziyao Hu
PY  - 2021
DA  - 2021/05/20
TI  - To What Extent Financial Autonomy Affects Social Security Expenditure
BT  - Proceedings of the 7th International Conference on Humanities and Social Science Research (ICHSSR 2021)
PB  - Atlantis Press
SP  - 1275
EP  - 1279
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.210519.250
DO  - 10.2991/assehr.k.210519.250
ID  - Hu2021
ER  -