Management Review

›› 2017, Vol. 29 ›› Issue (9): 239-248.

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Research on the Path and Strategies of Improving Chinese Fiscal Transparency Based on Game Theory

Shen liang1, Wang Yuyan2   

  1. 1. School of Public Finance and Taxation, Shandong University of Finance and Economics, Jinan 250014;
    2. School of Management Science and Engineering, Shandong University of Finance and Economics, Jinan 250014
  • Received:2015-06-01 Online:2017-09-28 Published:2017-10-09

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Abstract:

During the course of improving fiscal transparency, a dynamic game relationship between the public and government officials comes into being. In this research, we construct three fiscal transparency game models, of which the first does not have a reward and punishment mechanism, the second has a punishment-only mechanism and the third has a mechanism of both reward and punishment. By analyzing the three models, we conclude that:(1)when improving fiscal transparency is a spontaneous behavior of government officials and the public, it will not achieve the public satisfaction; (2) strong punishment is the primary condition to ensure officials conscientiously fulfill the responsibility of improving financial transparency; (3)the public supervision is an indispensable factor that motivates officials to enhance fiscal transparency. Therefore, at this stage, it is necessary to improve the legal system, implement a strict set of fiscal transparency assessment indicators, develop social organizations, promote participatory budgeting and encourage public participation and other aspects of system innovation.

Key words: fiscal transparency, the public supervision, game analysis