Can fiscal support reduce the income gap between urban and rural residents? An analysis based on heterogeneity and threshold effects

Fengyi Zhang, Ping Guo and Xianxian Fan

Finance Research Letters, 2025, vol. 80, issue C

Abstract: This study uses data from 31 provinces in China between 2011 and 2022 to explore whether fiscal support can reduce the income gap between urban and rural residents, focusing on heterogeneity and threshold effects. The findings indicate that fiscal support significantly narrows the income disparity between urban and rural residents. Additionally, the impact of fiscal support on this income gap varies across different regions, demonstrating heterogeneity, and its effect exhibits a threshold effect that changes with the level of urbanization in the region.

Keywords: Fiscal support; Urban-rural income gap; Threshold effect (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:80:y:2025:i:c:s1544612325006142

DOI: 10.1016/j.frl.2025.107353

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