The Balance between Growth and People’   s Livelihood：A Model for Household Restriction Policy of Chinese City Government

Wang Lixin，Wang Binbin and Huang Wenjia

（School of Economics， Fudan University）

Abstract:Supposed that the main factor of city government’   s development of household restriction policy is GDP and public welfare growth rate，a model of optimal household policy will come to conclusions: Household restriction which was set by the city government has a negative correlation with rate of return on local human capital，tax rate on citizen，the contribution rate of human capital to local GDP growth and the attractiveness to foreign labor of surrounding cities，as well as a positive correlation with the attention of city government to local citizen’   s welfare growth. Small cities which initially have a low level of public welfare will naturally reduce or even eliminate their household restriction，whereas metropolitans which have a high level of public welfare would enhance their household restriction and eventually stabilized in a tight degree. The deductions above have rich policy implications to identify a series of “Leverage Solutions” for household policy reform which aimed at reducing city household restriction. These solutions include: implement the GDP oriented assessment to city government and people’  s livelihood oriented assessment to large administrative region government; authorized city government to levy “homing special tax”; promote the development of small cities，urban tertiary industry，independent innovation strategies and the equitable distribution of social security and educational resources nationwide.

Key Words:City Government; Household Restriction; Per Capita Public Welfare; Marginal Congestion Costs

JEL Classification:J42， J61， R23

Impact of New Cooperative Medical System on Health Care Price

Feng Jin， Liu Fang and Chen Qin

(School of Economics，Fudan University)

Abstract: In a health care market where the provider has market power and for profit，introducing health insurance will cause health care price inflation and offset the effect of health insurance. We study the price effect of New Cooperative Medical System (NCMS) of rural China theoretically and empirically. Using village and county level panel data and employing difference-in-difference method， we find that NCMS has no impact on village clinic price， but will cause a rise of county hospital price. Furthermore， the higher the reimbursement ratio， the higher the price and the percentage of price increasing is almost equivalent to reimbursement ratio. The results testify the theoretical prediction that the monopoly power and profit target of county hospital will