Comparison Analysis of Employment Effect Between Productive Expenditure and Tax Reduction Policy
Based on the financial and employment data of 30 provinces,autonomous regions,and municipalities on the Chinese mainland,this paper analyzes the mechanism of the impact of expansionary fiscal policy on employment,and compares the dynamic changes of the employment effect of productive ex-penditure and tax reduction policy.The empirical results show that the employment effect of China's fiscal expenditure has gradually weakened after 2012,while the employment effect of tax reduction policy has be-come increasingly prominent after 2012.Further tests show that the diminishing marginal return of produc-tive fiscal expenditure explains the weakening employment effect of fiscal expenditure;The high operating costs,lower profit margins and the deepening impact of tax on the survival of enterprises explain the in-creasingly strong employment effect of tax policy.The Enlightenment of this paper is that under the back-ground of infrastructure stock constraints and the difficult business environment,the focus of fiscal policy should shift from the expenditure side represented by productive expenditure to the income side represented by tax reduction policy.
Productive expenditureTax reductionEmployment effectGMM model
万方数据
维普
