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Table 1 The two-sided authority of the government

From: The allocation mechanism of authority and accountability in Chinese government hierarchies: A case study of the “Earmarked Project System”

 

Production

Extraction

Small size

Solve market failure

Supply public goods

National defense

Legal order

Property rights

Stability

Public Health

Promoting social equity and protecting the poor

Antipoverty

Eliminating diseases

Taxation;

Strict budget constraint and supervision

Middle size

Solving externality: Elementary Education Environment protection

Control monopoly: Law of public service Policy of antimonopoly

Information regulation:

Insurance Consumer protection

Providing social insurance

Unemployment insurance

Unconditional grants

Unfixed income;

Extra-budgetary income ; non-budgetary income ;

“Implicit Tax”

Large size

Coordinating private activities

Promoting market

Multiple regulations

Redistribution:

Asset redistribution

Comprehensive extraction

Interests

Human capital

State as a super company

  1. Source: Adapted from World Bank 1997