This paper focuses on the cyclicality of rural public expenditure in China. We employed two types of instrumental variables to estimate the effects of fluctuations in GDP on rural public expenditure based on China’s provincial/municipal panel data during 2000–2016. The results show that once the corresponding endogeneity is controlled, whether in the long or short term, China’s rural public expenditure is characterized by procyclical behaviors. However, when regional differences are taken into account, the procyclicality of China’s rural pu...
