Growth versus equity: the effects of centralized fiscal transfers on Chinese provinces
研究中国中央对省级的财政转移支付是否在促进公平的同时牺牲了增长，发现效果因地区而异：中部省份实现公平与增长双赢，西部省份公平但牺牲增长，东北省份则公平与增长双输。
Centralized fiscal transfers to the provinces are the principal means of reducing income inequalities in China. The coastal provinces are the main transfer donors to the poorer provinces. We evaluate if the equity objective sacrifices aggregate growth using four panel vector auto-regressions (PVARs) for four geographical regions of Chinese provinces. The PVARs are estimated for centralized transfers, government spending, taxes and output from 1994 to 2018, whether or not transfers sacrifice growth depends on geography. Transfers reduce inequality and generate growth in the middle provinces; reduce inequality but sacrifice growth in the western provinces; and worsen inequality and sacrifice growth in the northeast provinces.