Target Setting in Tournaments: Theory and Evidence from China

A-Tier
Journal: Economic Journal
Year: 2019
Volume: 129
Issue: 623
Pages: 2888-2915

Authors (4)

Xing Li (not in RePEc) Chong Liu (not in RePEc) Xi Weng (Peking University) Li-An Zhou (Peking University)

Score contribution per author:

1.005 = (α=2.01 / 4 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Motivated by the prevalence of economic targets at all levels of territory administration in China, this article proposes a Tullock contest model to study optimal target setting in a multi-layered tournament-based organisation. In our model, targets are used by upper-level officials to convey the importance of economic growth and incentivise subordinates in the tournaments. Our model predicts a top-down amplification of economic growth targets along the jurisdiction levels, which explains the observed pattern in China. Using both provincial and prefectural-level data, we test the model predictions and find consistent evidence.

Technical Details

RePEc Handle
repec:oup:econjl:v:129:y:2019:i:623:p:2888-2915.
Journal Field
General
Author Count
4
Added to Database
2026-01-29