Decision Support for Local Governments Choosing Optimal Financing Approach: the Efficiency Evaluation based on Entropy Method

摘要

Nowadays, the Chinese local governments have tried various approaches to finance. This paper presents decision support for the local governments choosing optimal financing approach. By using entropy method, the efficiencies of four financing methods which are commonly used by the local governments are evaluated and compared. The result shows that the efficiency of local bonds financing is higher than that of land financing, platform financing and financial allocation by the central. Platform financing and land financing have relatively low financing efficiency.