Fiscal decentralization, revenue and expenditure assignments, and growth in China

Theory suggests that a close match between revenue and expenditure assignments at sub-national levels benefits allocative efficiency, and hence economic growth. That is, a convergence of revenue and expenditure assignments at sub-national levels of government should, according to the theory, be positively associated with a higher growth rate. In the case of China, this paper shows, divergence, rather than convergence, in revenue and expenditures at the sub-national level of government is associated with higher rates of growth. A panel dataset for 30 provinces in China is used to examine the relationship between fiscal decentralization and economic growth over two phases of fiscal decentralization in China: (1) 1979¨C1993 under the fiscal contract system, and (2) 1994¨C1999 under the tax assignment system. The seeming contradiction between the theory and evidence in the China case is reconciled by taking into account the institutional arrangements that prevailed during the two phases of fiscal decentralization, in particular the inconsistency between the assumptions of the theory of fiscal decentralization and the institutional reality of China.Fiscal decentralization, Economic growth, Revenue, Expenditure

Flat band electrons and interactions in rhombohedral trilayer graphene

Multilayer graphene systems with a rhombohedral stacking order harbor nearly flat bands in their single-particle spectrum. We propose ansatz states to describe the surface-localized states of flat band electrons. The absence of kinetic dispersion near the fermi level leaves the interaction as a dominate mechanism to govern the low energy physics of a low density electron system. We build up an effective lattice model in two interacting low-energy bands, where the full terms of the Coulomb interaction, including those long-range and off-diagonal parts, have been considered. The interaction matrix coefficients in the many-body Hamiltonian model are directly calculated for a trilayer system using orthonormal Wannier basis. We then present a flat-band projection to yield an interaction-only lattice model for flat band electrons. We find that this limited model might energetically favor a ferromagnetic quantum crystal under certain conditions.Comment: 8 pages, 3 figures, 3 tables. add journal reference and some discussions in the context. arXiv admin note: text overlap with arXiv:1108.008

Nonequilibrium-induced enhancement of dynamical quantum coherence and entanglement of spin arrays

The random magnetic field produced by nuclear spins has long been viewed as the dominating source of decoherence in the quantum-dot based spins. Here we obtain in both exact and analytical manner the dynamics of spin qubits coupled to nuclear spin environments via the hyperfine interaction, going beyond the weak system-bath interaction and Markovian approximation. We predict that the detailed-balance breaking produced by chemical potential gradient in nuclear baths leads to the rapid oscillations of populations, quantum coherence and entanglement, which are absent in the conventional case (i.e., Overhauser noise). This is attributed to the nonequilibrium feature of the system as shown in the relation between the oscillation period and the chemical potential imbalance. Our results reveal the essentiality of nonequilibriumness with detailed-balance breaking for enhancing the dynamical coherence and entanglement of spin qubits. Moreover, our exact solution explicitly demonstrates that the non-Markovian bath comprised by nuclear spins can preserve the collective quantum state, due to the recovery of coherence. Finally, we propose an experiment using ultracold trapped ions to observe these nonequilibrium and memory effects.Comment: 9 pages, 3 figure

Fiscal Decentralization and Peasants' Financial Burden in China

This paper sheds light on the heavy financial burden on peasants in China's fiscal decentralization system. Using a political economy framework, this paper explores the tax-farming nature of China's fiscally decentralized system and examines why the system incurs a particularly heavy financial burden on peasants. Specifically, it points out that a political hierarchy financed by a tax-farming system in China, fails to contain the exploitative behavior of local officials, which results in the expenditure devolution and revenue centralization within the hierarchy. Ultimately, peasants bear the brunt of the tax burden. As the financial pressure of excessive levies and fees reaches a perilous point, peasants are resorting to violent protests. Unless a fiscally decentralized system with horizontal accountability mechanisms evolves, the country's ability to sustain a centralized polity may become increasingly undermined. A case study of township finance is used to exemplify the exploitative nature of China's fiscal decentralization system.Fiscal Decentralization, Corruption, Financial Burden, China