A Strategic Transitional Institution Azzangement——A Case Study about Fiscall All-zound Resposclility system of China in 1980s
策略型过渡性制度安排——中国财政大包干体制研究

Kahneman and Tversky's respect theory of decisions under uncertainty indicates that people appear to be more adverse to losses,relative to their reference level,than attracted by gains of the same size.That is,people's preferences seem to be characterized by(local) loss aversion.A reform is essentially a decision-making under risk.Rational Decision makers choose transitional institutional arrangements for risk aversion that makes economic system change further in the face of least resistance.Fiscal all-round responsibility system is a kind of transitional institutional arrangement for budget management system transformation.Immanent instability in it intensifies the existed conflicts,weakens the central government's financial capability,and aggrandizes local states' anomalous behavior.Fiscal all-round responsibility system is a strategy after the reform made a target of tax distribution system.It can be called a strategic transitional institutional arrangement,which exists because of the coordination cost,i.e.,the cost on harmonizing different reform policies.It is the essential prerequisite that the central government has the reform leadership in its hand.If institutional transformation steps back,it might be a transitory phenomenon.It doesn't mean the failure of the reform or the retrogression of the transition progress.It should be a strategic transitional institutional arrangement chosen by the reformer because of the mismatching of different reform policies and the coordination cost.