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Market Mechanisms in the Process of Public Goods Supply

Author: LiHui
Tutor: ZhangZhiChao
School: Nankai University
Course: Finance
Keywords: Public finance Public goods The supply of public goods Market mechanisms Efficiency and fairness
CLC: F062.6
Type: PhD thesis
Year: 2010
Downloads: 728
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Abstract


Economics, the display preferences due to the characteristics of public goods or services and the free-rider problem, government provision of public goods than the market has a higher economic efficiency. Governments have long commonly used vertical integration and monopoly of the supply of public goods or services. However, in recent decades the practice results Description: government monopoly provision of public goods, in fact there is not only the problem of high cost, low quality, inequity, but also result in some kind of \The products lack the necessary option. In response to these issues, the public choice theory, new public management theory, appropriate to break the government monopoly and introducing market mechanisms advocated gradually accepted by many countries in the supply of public goods. In recent decades, developed countries and some developed countries in a variety of market-oriented reform movement in the supply of public goods, their practical experience has shown that the introduction of market mechanisms to improve public goods and public services largely supply efficiency and social benefits. Thesis, the Government, through the mechanism of public goods and services innovation, the introduction of market competition mechanism in the supply process, an important significance for improving the efficiency of public goods or services supplied, taking into account social equity. On this basis, by summing up the lessons of developed countries, combined with China's national conditions and the current supply and demand for public goods, a more detailed analysis of how the different types of public goods or services competition mechanism into the system design, mode selection, and various the development of market-oriented tools, use problem. Except the Introduction, the structure can be divided into five chapters. Chapter theoretical overview of a large number of relevant literature data, both at home and abroad on the characteristics of public goods supply as well as the theory of supply efficiency research, practice research of the sort, and to give a brief assessment. The second chapter entitled \reclassified in order to improve the efficiency of the supply of public goods for the next chapter focuses on the conditions, institutional arrangements necessary theoretical foreshadowing. Chapter III study two types of problems: First, the supply of public goods process the need for the introduction of market mechanisms, the theoretical and practical basis for the introduction of market mechanisms, as well as the introduction of market mechanisms in public goods and services that must have conditions; two institutional arrangements for different types of public goods and services, and how to introduce competition. In the fourth chapter, I focus on the production of public goods aspects of the introduction of market mechanisms, methods. The research results indicate that the public goods and services, the introduction of market mechanisms in the provision of public goods and services by way of competition, can greatly improve the supply efficiency and the degree of social equity. However, it should also see improved degree of economic efficiency and social equity, depends largely on the government the ability to manage the supply of public goods market, including an accurate grasp of the extent of the scope of application of tools for different markets, market-oriented programs design, the specific choice of the market-oriented approach, as well as how to use the corresponding operations such as the level of technical means. Chapter papers last chapter, the main research work focused on how the introduction of market mechanisms in the process of our supply of public goods. The author first analyzes the supply and demand of the public to explain our urgent need to promote the market-oriented reforms in order to improve the Government's ability to supply of public goods, and to ease the contradiction between supply and demand issues. Second, analysis of the basic situation of the market-oriented reforms have been carried out in China, the general results obtained, the main problems. Finally, based on our existing constraints, a more in-depth study further implementation of market-oriented reforms in the process of China's supply of public goods countermeasures and path selection problem. Thesis innovation is reflected in the following aspects: first, on the basis of the results of previous studies to expand awareness of the public goods or services and how to provide. I believe that the supply of public goods and services actually consists of two levels: the supply of public goods through the political process to make a choice decision-making level government focused on solving some kind of public product supply, supply quantity , quality, how to produce, how to allocate. Here, the government decision-making itself can also be regarded as public goods, because of government decision-making in the supply of public goods with the basic advantages of both efficiency and equity. The second is how to solve technical problems continued public resources effectively converted into public goods. In general, the companies in terms of production efficiency, technology and management advantages; through institutional innovation in the production of public goods or services supplied or management aspects of the introduction of market mechanisms, effective play to the comparative advantage of the government and market mechanisms to avoid each disadvantage, can better achieve the two main goals of efficiency and equity of public goods supply. Second, to explore the significance of the introduction of market mechanisms in public goods and services, for the promotion of social equity (equity) and internal mechanisms. The introduction of market mechanisms existing supply of public goods process research generally focuses on this mechanism for improving the efficiency and effectiveness of the role, focused on the pursuit of economic (economy), efficiency (efficiency), effect (effectiveness) target, referred to as the \The targets for this mechanism to improve efficiency at the same time how to promote social equity (equity), you have neglected. The fairness and efficiency of the study will be as equally important goal is to be concerned that the decision-making process in public goods or services through the democratization of the decision-making process, can better reflect the preferences and wishes of the majority of the members of society. By choosing a different form of market-oriented, such as the outsourcing contract form and the voucher system or financial subsidies combined, or other relatively complete contract design forms, can do a fair and efficient have both, and ultimately achieve public goods or service supply \Third, a more detailed study of the supply of public goods or services, market-oriented in our number of important technical issues: First, according to China's national conditions, as well as the reality of public goods supply and demand conditions, classification of public goods; two to study how the products or services of different categories of public market institutional arrangements under the existing constraints in China: the market is imperfect, imperfect legal system, lack of government capacity. Combines efficiency and fairness, the principles of control and supervision system optimization and Countermeasures Improvement of how vigorously promote China's market-oriented public goods. That the follow-up of market-oriented reforms should be unified deployment, system planning at the strategic level; strengthen the sense of responsibility of the government, the guiding ideology level to strengthen government accountability system; technical level to improve the operation of the government market. Ultimately improve the efficiency and fairness of the supply of public goods, in order to avoid the problems and contradictions in the pre-reform, to better meet the national need. Should be described, research the market-oriented supply of public goods problem that requires multi-disciplinary knowledge, including constitutional science, management science, sociology, philosophy, ethics, need a broad range of knowledge accumulation and good analysis and generalization This certainly is a big challenge to the thesis. In view of the public goods classification and supply the theoretical circles there has been a subjective, even arbitrary understanding, I could not escape so too. As for countermeasures research, more complex and difficult to comprehensive, in-depth, taking into account the feasibility and operability. I can only strive to do this, leave some regret inevitable. In addition, with regard to the effectiveness of the introduction of market mechanisms in the supply of public goods, from the point of view of the qualitative and practice analysis, but quantitative analysis is very difficult, mainly because of the introduction of the reform of the market mechanism in the supply of public goods in China just started in central government level is not yet promoting large-scale. Therefore, the scope of the reforms is relatively small in general is still in the exploratory stage, and in a short time is difficult to conduct a comprehensive assessment of the effectiveness of the reform. These defects can only be made up in subsequent studies.

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