Public Choice Perspective Interests Of Local Government Research

After nearly 30 years of accumulation and deepening, social and economictransformation of our country has gradually been touched on the essence of economicsystem. From the perspective of reform and system innovation, transformation hasentered a critical stage, one of important indication of which exists in the interestorientation of local government is causing widespread concern and discussion. Alongwith the economic and social transformation, the local government as an importantcomponent of social system, can be coordinated with local interests and promote eachother, though there are some factors of disharmony. This also means that the interestorientation of local government need to constantly make adjustments in thetransformation period, not only to consider the relations of local government with thehigher-level government and other local government, but also to consider the relationsof local government with businesses and residents under the jurisdiction of the region.Which principle do the interest orientation of local government make adjust to, how tomaximize the level of benefits the community as a whole, how to deal with other interestsubjects, all these questions have haunted the local economic and social development.The aim of this study is very simple. By using the basic viewpoints of public choicetheory to analyze the various benefits of local government level, and using the methodsof systems analysis, game analysis and data analysis, this paper finally get to thisconclusion: the interests of local government departments and the interests of localgovernment officials must be subordinate to and give service to the local interests. Themain contents are as follows:From chapterâ…¡to chapterâ…¤, making use of research paradigm of public choicetheory to analyze and expound the component of local government interests, help peopleunderstand the essence of local government policy. On the exponent of the localinterests, maximization of local welfare is the core of the whole local interests, which isdeeply analyzed from the local public goods and the public service-oriented localgovernment. This requires the local governments to make efforts to achievemaximization of local welfare. Otherwise, the local residents may have adopted "Votingby Feet".On the exponent of the interests of local government departments, the interestsof local government departments should be consistent with local interests, otherwise, thelocal government departments may be causing the X-inefficiency, the offside and absence, self-expansion, and a number of rent setting and rent-seeking behavior, but thisdoes not meet the long-term interests of local government departments. On the exponentof the interests of local government officials, in the provision of public goods, therational local government officials may be taken to free-riding and rent-seeking behavior,which is necessary to specify the behavior of local government officials under thearrangement of formal and informal institution institutional, and point out the reasonableguidelines of local government officials by using of yardstick competition mechanism.In chapterâ…¥, theoretically analyzing of economic activity of local governments ishelp to understand the reasons of local government failure. In the perspective of publicchoice theory, the market defects do not become good reasons that all questions must behanded over to local governments to deal with, so we must minimize the scope ofintervention of local governments to promote apolitical trend, and hand part of thepublic service's production over to the private sector. Even if eventually required theintervention of local governments, the conduct of local government should be strictlyregulated, focusing on their behavior to improve and perfect a variety of binding rules,and improving the political and economic performance through the perfecting of therules.In chapterâ…¦, through specific activities of local government, the game analysis ofthe interest orientation contributes to a profound understanding of behavioral tendenciesof local government in the course of policy making and implementing. Not only theoverall rent-seeking scale and the rental distribution proportion between the localgovernment officials and suppliers, but also the benefits and risks of rent-seeking of thetwo sides, not only the corresponding disclosing and supervising cost caused by therent-seeking behavior bringing to local government departments and local residents, butalso the optimal selection of all parties and the balanced payment under the givensupervision and punishment, is affirmed by the four-party game model of three-levelcommission-agent relationship. In order to create an effective deterrent to preventrent-seeking behavior and reduce the probability of rent-seeking behavior, localgovernment departments and local residents intensify supervision of the rent-seekingbehavior, or local government departments increase penalties to rent-seeking behaviorbetween local government officials and suppliers. Game analysis of related activities oflocal governments, especially for the specific analysis between local governmentdepartments and local government officials under asymmetric Information or symmetricinformation, helps people understand why the local government must rely on the correct interest orientation to develop local economy.In chapterâ…§, in accordance with the relevant specific statistics, this paperanalysis the influence and decision mechanism of interest orientation looking upon localgovernment as a special interest body. With increasing the striking force to the behaviorof power rent-seeking, the interests of local government departments and localgovernment officials will gradually become standardized and transparent. Thus, theerosion to local interests, the destructive force to the economic structure and rules, andthe decision and infection to the behavior of local government will keep narrowing.However, various data show that corruption will still exist for a long time. At thesame time, the local interests are narrowed continuously by the interests of localgovernment departments and local government officials. Therefore, local governmentsshould continue to strengthen the public service functions, improve the overall level oflocal interests, and provide security, and create conditions for local residents toparticipate in social, economical, political and cultural activities. The opinion that theinterests of local government departments and the interests of local government officialsmust be subordinate to and give service to the local interests is confirmed again from theperspective of data analysis.