Theoretical Analysis On The Provision Patterns Of Public Goods

Because of public goods' two characteristics, non-excludability and non-rivalry, the market cannot provide it efficiently, the government become the sole providers in the public goods market. But the government can hardly provide enough public goods for the society because the demands of public goods are increasing and the public sectors always inefficiently use public finance.In 1970s, many governments in developed countries began to use market to provide public goods with success. This gives us a useful experiment to solve the puzzle of the public goods' provision. The dissertation detailedly analyzes why the governments can utilize the market to provide public goods, the theoretical foundation of market provision public goods and how to balance the governments and the market in order to provide necessary public goods. These studies will take on the active meaning for the improvement of the public goods provision system, the construction of the public finance system and understanding the relationship between government and market under market system.The public goods' characteristics will be changed because of the changes of the economic development level, technical level, demand elasticity, externality, and so on. So when we talk about the public goods' characteristics, we must consider their precondition. This precondition is the public goods congestion. The public goods will have two characteristics when the number of public goods' users is less than the number of public goods' congestion point. Based on this point, the public goods is a special goods whose designed users is more than one person. Both the government and the market can provide the public goods. This is the economic development theory of the public goods provision.Based on the economic development theory of the public goods provision, there are three main public goods provision patterns: public provision pattern; market provision pattern and private voluntary provision pattern. These are separately analyzed in this dissertation. When the governments use market to provide public goods, the public provision means that the governments evenly distribute the public goods to the society. The voluntary provision of public goods has proved that individuals are not always free rider in the public goods provision. An economic person possesses of two characteristics:altruism and egoism.In order to prevent the private companies from paying less attention to the public interests when they provide public goods, the governments always regulate their activities. This dissertation analyzes systematically the governments' regulation methods and their objects. But the traditional regulations are inefficiency because the governments did not take into account the asymmetric information between the regulators and the regulatees. In order to improve the efficiency of the regulation, the traditional methods should be innovated. The negotiated regulation between the governments and the regulatees may be a good method.In the end, this dissertation presents the endogenic conflicts in the rural public goods provision system based on the economic development theory of public goods provision. In order to solve these problems, the traditional provision system must be reformed institutionally, and more funds should be collected for the provision of the rural public goods, as well as improving the fiscal investment in these fields.