| Abstract | The role of competition in disciplining government is conditional. When regional governments compete in tax and public service simultaneously, the relationship between the multiple competitions depends on the endowment of the economy. Even in symmetric competitions, when capital endowment is plentiful, the tax competition can increase the incentive of government to supply more public goods, however when the endowment is scare, more intensive tax competition may induce more public resource into extravagant official consumption. Using the provincial level panel data in China, the empirical evidences support the above proposition. |