Working paper · Work in progress
Traffic Congestion and Local Government Fiscal Activities: Evidence from Urban China
Abstract
Based on a panel of Chinese prefectures, this paper examines how traffic congestion shapes local governments’ fiscal behavior. By employing dynamic System GMM estimators and documenting non-linear congestion effects as well as heterogeneity by initial debt burdens, I find that greater traffic congestion is associated with lower debt-to-revenue ratios, with the suppressing effect strongest under mild-to-moderate congestion and weakening at more severe levels.
Keywords
Status
This paper is a work in progress. If you would like to know more about it, the quickest way to reach me is a direct message on LinkedIn.
If you would rather write, my address is alu.phd@ivey.ca