The enduring trauma: How officials' childhood famine experiences affect year-end spending surge

• 成果类型: Article
• 署名作者: Chen, Xing; Zhang, Peng; Zhang, Ping; Zhuge, Andong
• 署名单位: Fudan University; The Chinese University of Hong Kong, Shenzhen
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/j.jdeveco.2024.103356
• 发表日期: 2024
• 关键词: Fiscal expenditure; Fiscal conservatism; Year-end spending surges (YESS); Imprinting effect; China great famine

摘要

This study investigates the impact of government officials' childhood famine experiences on year-end spending surges (YESS), a phenomenon where organizations rush to spend unspent funds at fiscal year-end. We propose that early-life famine trauma fosters fiscal conservatism, leading to underutilized budgets, but the use it or lose it rule forces spending by the fiscal deadline. Analyzing data from Chinese cities (2008-2018), we find that officials who experienced famine in childhood significantly increased YESS, reducing fiscal efficiency and hindering local economic development. The effect is most pronounced among those who experienced famine in early childhood and is amplified in financially autonomous cities governed by officials with extensive local networks. Additionally, the observed correlation between mild depression and famine trauma suggests psychological mechanisms underlying the persistent effects of early trauma on fiscal behavior.