| Compulsory Education funds is the material basis for its survival and development,and the mechanism of investment, distribution and usage is the decisive condition for sustainable development. Mechanism to ensure funding for compulsory education is to safeguard the adequacy, fair and efficient of education funding, which is giving rules to agents and ways of investing, agents and ways of allocation, agents and ways of usage. The formation of Mechanism to ensure funding for compulsory education goes along with the politics, economy, fiscal and educational system, and changes with them. However, it is not totally subject to them, and it has lots of choice space to redesign within the system.The mechanism design theory is a branch of microeconomics and the game theory, and is the game theory and the social selection theory synthesis utilization. As a methodology, it comes out abstractly the different mechanism's common attribute, simultaneously unfolds through the concrete question's application, in order to use in screening the existing mechanism the fitness and unfitness and to construction mechanism to realize the goals. This research takes mechanism design as basic theory analysis method to study the fund security system of our nation's compulsory education. Within the analysis dimension which is inner mechanism of its function——information and incentive, the research inspects the internal defects of the fund security system of our nation's compulsory education since the new China founded, besides, it analyses the current dilemma existing in followings:"new mechanism"of fund security for rural compulsory education,"district charging"mechanism of fund for urban compulsory education and"two charging"mechanism of compulsory education fund for floating children. Based on optimized mechanism design principles——informational efficiency and incentive compatibility as standards, referring to regulations and experiences of investing, allocating and using for compulsory education funds, the research innovates our current fund security system of compulsory education as well as promoting several suggestions as follows: responsibility distributing of compulsory education funds investing among governments should be"sorting by county"in countries,"classified contracting"in cities,"shouldering by multiparts"towards compulsory education funds of floating children; school-based budget system should be applied to allocating and using of compulsory education funds both in cities and in countries; setting self-development items in school budgets, reforming the procedure of budget making of school, simplifying the process and adding supervising system; establishing legal existing mechanism for schools of floating children in order to guarantee their rights.Because the fund security system of compulsory education couldn't be finished once for all owing to variety of social environment, it may be more significant to bring forward a more abstract and universal evolvement principle of compulsory education fund security mechanism. The design and evolvement of future compulsory education fund security system should obey the rule that diachronic associated optimizing and contemporary construction should be complemented in order to improve the compulsory education.Framed by three dimensions which are theory, object and question, as well as clued by thinking order and time order, the research studies the actuality, dilemma and solution of compulsory education fund security mechanism. The concrete contents of main body is as follows: Chapter one explains the fundamental theory of compulsory education fund security mechanism. Starting from the analysis of concept——mechanism, then going to summarize the mechanism design theory; bringing forward the framework of theory analysis for compulsory education fund security mechanism according to universal principle of mechanism design, including factors of that mechanism, object orienting and operating system environment, this provides exploring solutions for practical problems solving.Chapter two reviews the history of compulsory education fund security mechanism. These factors have great influences on the operation of the mechanism in rural and urban areas, such as developmental strategies of the nation, the economic mechanism, financial mechanism and educational system. Compulsory education fund security mechanism has a great relation to economic mechanism in rural areas. However, the mechanism in cities has a great relation to the national macro-economic mechanism and financial mechanism. Under the theory of mechanism design, the shortages are asymmetry in messages, the contradict choices of clients, motivation inconsistency and agent moral risks.Chapter three analyzes the realistic plight of our nation's compulsory education fund security mechanism."New mechanism"of fund security for rural compulsory education,"district charging"mechanism of fund for urban compulsory education and"two charging"mechanism of compulsory education fund for floating children faces dilemma of operating mechanism among responsibility distributing among governments, funds allocating and using between government and school. And this is the root of problems existing in compulsory education fund security mechanism.Chapter four designs optimized mechanism which guarantees finance in Compulsory Education in China. Design of optimal mechanism needs to follow principles in informational efficiency and incentive compatibility, also referring to normal principles and practical experiences of financial supporting and distribution. Under present social context, referring to regulations and experiences of investing, allocating and using for compulsory education funds, compulsory education funds investing in countries should be"sorting by county"in rual,"classified contracting"in urban,"shouldering by multiparts"towards compulsory education funds of migrant children; school-based budget system should be applied to allocating and using of compulsory education funds. Besides, we should set self-development items in school budgets, reform the procedure of budget making of school, simplify the process and adding supervising system, and establish legal existing mechanism for schools of floating children in order to guarantee their rights.Chapter five is conclusion and outlook. The design and evolution of the compulsory education fund security mechanism in future should follow the rule that diachronic associated optimizing and contemporary construction should be complemented in order to improve the compulsory education.
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