Study on the institution of China's local government bonds on the SSP paradigm

摘要

In 2009, China began to implement an administrative control on the institution of local government bonds. The system is centered on the central government's control. From then on, academic communities began to criticize and to study this new system. Based on Situation-Structure-Performance (SSP) paradigm, the paper tries to analyze the interdependences within the participants around local government bonds market and the changing direction of local government bonds institution. It believes that different interest groups have different expectations and evaluation on the performance of local government bonds, which, furthermore, influences institution choices and arrangements. Finally, the paper concludes that the main direction of local government bonds reform is the relaxation of the central government constraint and improvement of related institution.