Analysis On The Effect Of Public Expenditure And Relevant System Arrangement In China

In the market economy system, public expenditure is required to make up of the flaw of the market, to promote economy GRO and to maintain society fairness. The quantity and structure of public expenditure can affect the economy GRO and the society harmony. The efficiency of public expenditure can strongly influent the society development procedure. System of public expenditure is not only the reason of deviation from the most efficient scale of public expenditure, but also the method to correct deviation. Therefore, the most efficient quantity and the efficiency of public expenditure and system arrangement have high theoretical and practical significance.There is no agreement on whether most efficient scale of public expenditure exists. But the analysis on public expenditure scale which includes factor of economic structure and political economic system shows: a) the degree of rationality of our current public service scale, b) the common movement of economic structure factor and political economics factor which affect public service scale decides the fluctuation of our country's current public service scale.To find out if the scale of public expenditure is reasonable or not, we can take look at the effect of public expenditure on how much it influent the economy GRO and social fairness. As to the relationship between them, this article established a common VAR diagnosis theoretical model to assess the efficiency of public expenditure in economy development. This article also constructs a comprehensive model of GRO, unequal and the public expenditure, which analyzes the relationship among them.Different public expense scale has different effect on the economy GRO and society fairness. This leads to consideration on efficiency of our country's public expenditure. The history of assessment on efficiency of public expenditure in our country is not long. In recent years, different local government try to work on it and the system, method of public expenditure assessment are obviously developed. But there are still some problems. By estimating and analyzing the relative efficiency of public expenditure with the improved DEA model, we find out that we must continue to consummate the system or the mechanism of our public expenditure. Since the efficiency of public expenditure differs, research and construction of public expenditure system become the solution research. Compare with developed country and some developing nations, unreasonable factors exist in the total amount of public expenditure and structure in our country. Therefore, the research on western developed countries'or some developing nations'public expenditure can help to outlook the trend of China's public expenditure and have high significance on the decision of scale and structure of China's public expenditure. As a result, this article describe the tendency of public expenditure of our country by two ways of crosswise and level comparative analysis, and conducts the research of system of public expenditure. From the point of transaction cost economics, this article found a model to analyze and construct effective public expenditure system of our country, take China's public water supply as the example. At the same time, by introducing the updated international statistical data, the article studied the character of amount and structure of foreign countries and from the point of comparison, get the conclusion on how to reasonably judge the range and public expenditure and to consummate the structure and efficiency of public expenditure.