Fig. 2: Theoretical framework: China’s bureaucracy relationship based on principal-agent theory. | Humanities and Social Sciences Communications

Fig. 2: Theoretical framework: China’s bureaucracy relationship based on principal-agent theory.

From: Facilitating fertility decline through economic development: a principal-agent analysis of local bureaucratic incentives in China’s fertility transition

Fig. 2

China’s central and local governments function via a principal-agent relationship. The central government instituted a results-based target management system with clear rewards and punishments. This system risks incentive distortions, requiring the central government to punish deviant officials.

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