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A Theoretical And Empirical Study On The Dual-layer Provision Of Public Goods

Posted on:2008-11-19Degree:DoctorType:Dissertation
Country:ChinaCandidate:B T ZhaoFull Text:PDF
GTID:1119360212994352Subject:Public Finance
Abstract/Summary:PDF Full Text Request
With the development of economy and society, the income level of people and the demand to public goods promote gradually. The interdependencies of people on production and consume increase apparently, so does the relation between private economy and public economy. There are some new tendencies in public goods theory and practice. First, public economy attains the same status like private economy. Second, the tendencies of marketability and equity in the supply process of public goods amplify step by step. For example, the quantity and the rate of public goods increase continually, the structure of public goods is more suitable, and so on. Since 1980s, in developed countries, for example, Britain and America, the marketability or the privatization tide and the government public management movement, as well as China's market economy reform and the public financial system construction, have manifested the tendencies. It may be that the better economy develops, the more important the supplies of public goods are.Under the condition of the new tendencies, the question of poor efficiency of provision of public goods becomes more important and pressing. There are some reasons. First, public goods have the peculiarity of natural monopoly, and the market mechanism has poor efficiency on provision of public goods, so people think that it is that supplying public goods is government's duty only, that there is not difference between natural monopoly and administrative monopoly, which results in that only government supplies public goods in long time. Second, people have being ignore the complication of provision of public goods, the different impact or status or importance of different consumer or company or organization in different provision layer of public goods, so neither market mechanism nor government mechanism has good impact. Third, the level of democracy is low, or autocratic decision mechanism does not display the bias of consumers on public goods. When the quantity and the rate of public goods are less, the efficiency of provision of public goods is easily neglected, but when they are more, it is more important and pressing. Though there are some economists who attained famous achievement in public goods theory, for example, Samuelson and Buchanan, and so on, the problem has not been resolved.Therefore, the aim of the article is to study how to improve the provision efficiency of public goods in theory and on practice, mechanism or framework, to study the feature of systems of public goods provision, and so on.The available document does not have received concept of public goods, which make people misinterpret on its concept and its two layer of provision. Therefore, the article ameliorates the concept of public goods, and explores the framework of public goods provision based on the new concept. The article makes the supply efficiency of public goods be clue, the different and limited rational individual be premise, the new concept of public goods be base, the processes of public goods dual-layer provision be core or main content, the highway be example, the theory of evolutionary game and econometrics be method, and so on, and explores the key of the problem.Primarily, from the angle of decision-making of individual on demand and supply public goods, the article ameliorates the concept of public goods, that is, public goods make up of two components or layers, namely hardware and software. Public goods and its provision embody the interdependencies of people on utility and the aim of benefit, and are process of system's forming by evolution and option or choice of all people for personal benefit. The new concept of public goods should connect demand with supply, income principle with equity principle, evolution with choice, division with collaboration, and so on, in order to display the crucial impact of individual in the process of decision-making. Government may coordinate the relationship of benefit among people and stand up for the market system by providing the component or layer, namely software. And the government mechanism has advantage of net income on provision software. However, hardware has more features like private goods, and its consumers and its suppliers or producers may separate. And the supply, transaction and cost compensation of hardware fit in with market mechanism like private goods. So the market mechanism has advantage of net income on provision hardware. Therefore, good collaboration between government and market mechanism may fulfill or acquire Pareto efficiency or the Samuelson's rule.Subsequently, the article demonstrates the theory of Dual-layer provision of public goods, and assays the two provision layers with evolutionary game and contestable market theory. Form the new concept of public goods, we can know that public goods have two layers. First, the first layer of public goods provision is provision of software. The article looks on provision of software as the equilibrium or outcome of public choice game, so it expands the provision of public goods to software or institutions layer. By public choice game, the software of public goods comes into being, which coordinates the relationship in cost and income of hardware among people, and the process of game is provision of software. Second, the second layer of public goods provision is provision of hardware. Under the rule of software, who provide hardware of public goods dependents on the competition outcome among suppliers or producers or companies decides, namely, champion attains the precedence. The article assays materially the reasons, conditions and rules of market of hardware with the theory of contestable market. The process of competition and provision hardware is the second layer of public goods provision. Therefore, that is accurately, the market provision of public goods is the market provision of hardware, which is the process of expansion of market mechanism and the process of cooperation between public sectors and private sectors. In addition, two layer of public goods or its provision impact each other. On one hand, the provision of hardware subjects to software or its provision, namely, the transition or innovation of software may transform the condition of hardware provision. On the other hand, hardware and its provision may impact software and its provision, display the situation of provision efficiency of public goods, and expound new need or requirement for software.Finally, applying the theory of dual-layer provision of public goods to practice, taking the Chinese road provision as an example, the article studies the system of the public goods provision, the software of road, and marketability provision of road, and so on. In brief, from two aspects of theory and practice, this article proofs the probability and necessity that developed market and mighty or powerful government (Stieglitz, 2005) coexist together. Only the superiorities of market mechanism and government mechanism have been displayed, and the perfect dual-layer provision mechanism of public goods has come into being, then the problem of poor efficiency can be solved.The article takes Marxisim as principle, persists that theory and practice are same important and that the qualitative analysis and the quantitative analysis are same important, and combines regulation analysis method with experience analysis method, takes modern economics as the main basis of theory, absorbs and learns relevant theory achievement from other disciplines. First, the article uses many methods and combines studying with deepening, abstract and concrete, individual method with integral method, and so on. On the base of relevant literature, the article ameliorates the concept of public goods and its supply mechanism, and provides a new analysis frame. After the abstract assaying, the article gives a specific example, namely highway, to demonstrate the new frame. On the base of personalism, the article looks government or organization as a unit of decide-making, so it combines the personal benefit with collective benefit. Second, the article uses the method of cost-income extensively. From the aspect of cost or net income, the article expounds the new concept of public goods, and that people should choose the styles of provision of public goods on comparing cost or income of public goods. Once more, the article is on the foundation of economics or public finance, and benefits especially from many branch disciplines, for instance, theory of evolution game, evolution analysis of new institution economics and public choice theory.It is very significant to solve the problem of public goods for efficiency of configuration and allocation, transformation of government function, promotion of economy system, and so on. First, the enhancement of public goods provision may improve private goods efficiency and integral efficiency, and be beneficial to coordinating contradiction among personal income. Second, the process of enhancing public goods efficiency which is the process of cooperation and division among people, and the process of improvement of public goods provision institutions, and the process of harmony between market mechanism and government mechanism, benefits to innovation of provision institutions of public goods, transformation of government functions, and improvement of democracy in economy domain. In addition, it may solve many relevant problems to solve the problem because of the poor efficiency of public goods, for example, financial deficit or pressure and its risk, and macroeconomic problems on consume and investment because of insufficient or superfluous provision of public goods.It is very significant to solve the problem of public goods theoretically for public economics or economics, and the theory public goods, and so on. First, the problem of public goods provision is a important and fundamental or essential problem, which may benefit to public economics. Second, it is beneficial to exploring the suitable criterion of efficiency of public goods provision, and contradicting the contradiction between efficiency and equity. Third, it is beneficial to cooperation between government mechanism and market mechanism. In addition, because of the relationship among problems of economy, society, and politics, and so on, the article tries to learn and synthesize some outcomes of many subjects, which may promote the development of economics.There are several innovations mainly in the article. First, from the aspect that individual takes party in decision-making of public goods provision styles, the article ameliorates the concept of public goods, which includes two components or layers, namely hardware and software. Second, the article puts forward that public goods have two layers, namely the first layer or the layer of software provision and the second layer or hardware provision, and the new frame or theory of dual-layer provision of public goods. Third, the article uses evolution game and contestable market theory to assay dual-layer provision of public goods, looks on software provision as the equilibrium or outcome, and assays the rules of excise management in the process of public goods provision. Finally, using the new theory of dual-layer provision of public goods, the article assays the history of Chinese highway software provision, its provision efficiency, and their reasons, and so on. The paper obtains that the enhancement of Chinese marketability level and transformation of Chinese highway software promote the growth of public goods in quantity and of provision efficiency, but the situation of natural monopoly and administrative monopoly puts off the promotion of provision efficiency.Certainly, the article has some insufficiencies which need continue to explore. First, the article expounds the new concept of public goods from only qualitative aspect, which is not a precise concept of public goods from quantitative aspect. Second, evolution game theory is a young economic branch and is in the process of development, and may have some defects, which is not beneficial to the analysis. Third, the equilibrium of evolution game is a evolutionary stable strategy (ESS), not a definitive action or policy of public goods, so it does not put forward some efficient policies or proposal or advice, and so on.
Keywords/Search Tags:Public goods, Dual-layer provision of public goods, Provision efficiency of public goods, Public choice, Evolution game
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