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Chongqing regional differences in the supply of public goods and Equalization Mechanism Research

Author: LiuBin
Tutor: YuXingHou
School: Chongqing Technology and Business University
Course: Industrial Economics
Keywords: supply of public products non-equilibrium degree the balanced mechanism path analysis
CLC: F224
Type: Master's thesis
Year: 2011
Downloads: 47
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Abstract

Supply of public products is very important for the development of national economy and the improvement of welfare benefits of the people. With the rapid growth of national income and the development of the society, the marginal social benefits of private products diminish, while the marginal social benefits of public products increasing. The demand of our society for public products is rapidly growing. Meanwhile, the supply of public products (especially in rural areas) has been in the lower level, increasingly unable to meet the demand of development of our society and economy.Chongqing is a typically municipality with the coexistence of urban and rural areas, the imbalance of regional economic and social development, and the distinctness of dual economic structure and system. Though Chongqing has made a considerable economic and social development since it became a municipality, it still has an obvious problem of the imbalance of regional development. The supply of public products is increasingly widening gap between the regions. It becomes the bottleneck of economic and social development of Chongqing at last. Therefore, the study on the supply of pubic products has great theoretical and practical significance for narrowing the gap in Chongqing region, Co-coordinating urban and rural development, improving living standards, building a well-off society and constructing a harmonious society.This article is divided into four parts: basic theory, the research of current situation, the analysis of reasons, path finding and policy proposal. The basic theory: system introduce the theory of public products and other relative theories, conduct the evaluation briefly; define the textual study scope on the basis of the definition and classification of the domestic public products. The research of current situation: first calculate and analysis the equal levels of the degree of the supply of public products from six factors: the local financial capacity, basic education, health care, public culture, social security, infrastructure in districts and counties of Chongqing , then it has an empirical analysis with the factors affecting the supply of public products; at last it conducts a comparative study on the regions’supply of public products on the basic of Chongqing’s regional development strategy of“One-hour economic circle and two wings”. The analysis of reasons: first it analyses the theoretical necessity of the short supply of public products on the static game and bounded rationality dynamic game perspective, after the analysis of Chongqing’s finance gross and structure, put forward the opinion that the gap of fiscal solvency is the main reason cause the difference between different regions in the supply of public products; at last, analyze the other subjective and objective reasons that cause the dilemma of Chongqing’s supply of public products. Path finding and policy proposal: first do theoretical study on the diversification of the body of Chongqing’s supply of public products. Then explore the path of building the equilibrating mechanism of Chongqing’s supply of public products from the optimization of modes of supply, the chosen of the supply order and merit system combined with the foregoing study results and the fact of Chongqing’s development of society .At last giving some policies of improving the supply of public products. The conclusions will be meaningful to study the problems of narrowing the gap in Chongqing region, Co-coordinating urban and rural development, improving living standards. Hence, it is of great theoretical and practical significance for building a well-off society and constructing a harmonious society.

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