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Need, Bargaining, or Efficiency Driven? Explaining Central-Local Fiscal Transfers in Post-Reform China
Unformatted Document Text:  18 Table 3. Characteristics of Variables Variables Max Min Mean Dependent variables Per capita tax return 7.38 3.53 5.09 Per capita central transfer (excluding tax return) 8.47 2.71 5.12 Explanatory variables Historical factors Lagged per capita tax return 7.01 3.03 5.04 Lagged per capita central transfer (excluding tax return) 8.20 2.71 5.00 Local fiscal and economic conditions Per capita GDP 10.61 7.53 8.77 Per capita budgetary revenue 8.37 4.49 5.96 Per capita budgetary constructive expenditure 7.75 3.56 5.08 Ratio of deficit to budgetary revenue 7.49 2.63 4.40 Local public services Hospital beds per thousand people 1.77 0.43 0.99 Illiteracy rate 4.03 1.47 2.49 Unemployment rate 7.4 0.4 3.31 Local bargaining power Minority 1 0 0.16 Political representation score 11 1 5.42 Control variable Inflation rate 4.78 4.55 4.63 The results of the statistical analysis are presented in Table 4 below: 39 For all the explanatory variables that are skewed, I transform them by taking log.

Authors: Zhan, J. Vivian.
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18
Table 3. Characteristics of Variables
Variables Max
Min
Mean
Dependent variables
Per capita tax return
7.38
3.53
5.09
Per capita central transfer (excluding tax return)
8.47
2.71
5.12
Explanatory variables
Historical factors
Lagged per capita tax return
7.01
3.03
5.04
Lagged per capita central transfer (excluding tax return) 8.20
2.71
5.00
Local fiscal and economic conditions
Per capita GDP
10.61
7.53
8.77
Per capita budgetary revenue
8.37
4.49
5.96
Per capita budgetary constructive expenditure
7.75
3.56
5.08
Ratio of deficit to budgetary revenue
7.49
2.63
4.40
Local public services
Hospital beds per thousand people
1.77
0.43
0.99
Illiteracy rate
4.03
1.47
2.49
Unemployment rate
7.4
0.4
3.31
Local bargaining power
Minority 1
0
0.16
Political representation score
11
1
5.42
Control variable
Inflation rate
4.78
4.55
4.63
The results of the statistical analysis are presented in Table 4 below:
39
For all the explanatory variables that are skewed, I transform them by taking log.


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