| The theory of public goods is the major of the modern theory of public finance, as the constant development of the theory of public goods the researcher's vision has turned into the supply of public goods from the concept, features of public goods. Based on anglicized domestic and foreign research literature, made us realize that the study of the supply of public goods has gone through several stages : As early as the mid-17th century classical economists from the government functions starting to understand that public goods required the government to supply, then the theoretical realized that "market failure" existing in the supply of public goods, the government must supply the public goods to make up for the "market failure", this is the first stage understanding; the government involved in social life more and more, including basic education, social security, environmental protection, etc., but from the government budget expansion motivation of the "internal" and the presence of incomplete information made the unit cost of public goods rise, causing the government to provide public goods can not satisfy the consumer's preferences and "government failure" phenomenon exists, and part of public goods supplied by the private sector is more efficient than supplied by the government, theoretical realized that public goods can be supplied by government and marked; because "market failure" and the "government failure" existing in the supply of the public goods, the voluntarily supplier such as the third sector play an increasingly important role in the supply of public goods, involving the area of education, health, poverty, etc., but "voluntary failure" also exists in the supply of public goods by voluntary supplier. Who should supply public goods can achieve a balanced supply has been plagued by a theoretical problem. Meanwhile, the supply of public goods in the study and practice exists an unavoidable difficulties, that is the choice of supplier who supply the public goods is a passive process, the passive selection process is a pre-select process after the loss of efficiency of the supply of public goods. To avoid the inevitable loss of efficiency in such a passive choice, it should take the initiative to choice the supplier of public goods. Therefore the selection criteria of the supplier, how to choose the supplier and how to change the supplier of public goods successfully is an important theoretical significance study.Since the 1960s, the most remarkable achievements of the economics is the New Institutional Economics' generation and development. New Institutional Economics and the traditional microeconomics, macroeconomics, together, constitute the contemporary economics' complete system. The supply of public goods is also transactions. Transaction costs exist in the supply of public goods and activities affecting the supply of public goods efficiency. Therefore, using the transaction cost theory to analysis of the supply of public goods can help to identify the essence of choose and change of the public goods' supplier. Introduced the New Institutional Economics' analysis paradigm into the research of the public goods' supply is a new research perspective, hope to make a depth research about the choice and change of the public goods' supplier, to making a theoretical framework that can solve the problem ,therefore, the study has strong theoretical significance.In China, education, health, medical, and other public goods supplied balance is a socialist harmonious society goal. More and more people pay attention to the problem that primary education, the basic medical health service can't meet the public's increasingly demand and the problem must resolve urgently. But China is in a transition period, the key to solve the series of problems is to find potential public goods suppliers under the circumstances that we have limited financial resources. It is not difficult to find that it, in essence, is a continual process of searching for the optimal supplier of public goods and changing the supplier after studied the reform process of the supply system of public goods in China. Therefore, Study on the main choices and the changes of the suppliers of public goods has even more practical significance in the process of the suppliers and supply system of public goods have been constantly changing in China. If we find the answer to this issue, the problems existing in the transformation of the government, in central and local intergovernmental relations, in market-oriented reform and in development of the third sector would be resolved.In this paper, the overall framework based on the issues raised, firstly prove a single supplier supply of public goods can not achieve balanced supply and there is a multiple supply mechanisms supplying public goods; Secondly, demonstrate selection criteria that can use to choice the supplier of public goods, definite the border of different public goods suppliers, then analysis the reasons, conditions, types and effectiveness of suppliers change; thirdly analysis the choice and change of the primary education supplier using the theory framework that we bring out in the paper, prove that the theory framework is practical; finally, proposes policy suggestion of the public goods supplier choice and change. Based on this research mentality, the paper is divided into seven chapters:The first chapter is the "introduction", which mainly introduces this subject's source, the main definitions, the organization and the main innovative points and shortcomings.The second chapter is the "literature reviews",which includes the literature on the public goods supply theory of government, government-market, and government-markets-voluntary supplier, intergovernmental supply theory, and research literature's review and evaluation.The third chapter has established the non-equilibrium models of public goods supplying, demonstrated that a single supplier, two suppliers or three suppliers of public goods will be unable to achieve the supply and demand of public goods equilibrium, resulting in the loss of social welfare, expounded on the multiple supply mechanisms of public goods. The fourth chapter has introduced issue of the supply of public goods into the transaction cost economics analysis framework that in the process the supply of public goods will inevitably have transaction costs, expounded on the factors that impact of transaction cost in the course of the supply of public goods. Through the establishment the theoretical model of public goods suppliers' choice criteria, that the choice of optimal supplier depends on the marginal transaction costs in the process of public goods supply, through the expansion of Williamson's model definition the boundary of public goods supplier.The fifth chapter has elaborated the vicissitude reason, the conditions, the types and effectiveness of public goods suppliers' change, and through the establishment of the reciprocal evolutional two-level game mode explaining the strategy chosen by public goods supplier. That the supply of public goods, there is the incentive and fundamental reasons for the suppliers changes, indispensable conditions for the supplier's change of public goods are effective organizations, the change of relative prices and preferences, the supplier's change is mandatory and non-mandatory changes. No matter which type of change approach will have an impact to the efficiency and fairness in the process of supply of public goods.The sixth chapter has analysis primary education in China used the institutional economics analytical framework of the public goods supplier's choice and change. First defined the primary education product attributes, and explained the multi-mechanism primary education and supply situation; Second, calculated the transaction costs in the process of the supply of primary education, the conclusion is that under certain conditions the market and voluntary main suppliers supply some of the primary education can reduce the transaction costs; Finally, recalled, summarized, analyzed the suppliers' changes of primary education and thought that China's supplier of primary education should adhere to the mandatory changes, and to give full play the non-mandatory changes' role. The seventh chapter has proposed the strategy of public goods supplier' choice and change in the process of supplying public goods in China. On one hand, develops the multiple supply mechanism of public goods, by the government supplies primarily and encourages the market and the voluntary supplies, On the other hand, pays attention to the public goods suppliers' change creates the condition for it, insists that the government's role in the change of suppliers and guides the market supplier and voluntary supplier take non-mandatory change to increase the efficiency of public goods supply.The main innovation reflects in the following aspects:First, has carefully examined the issue of public goods supply based on the economics of the transaction cost theory and institutional change theory and carried on the thorough analysis, through this different research perspective of view, had the new understanding and the analysis to the issue.Second, has established non-equilibrium models of public goods supplied by the sole supplier, two suppliers and three suppliers, through the stringent conditions of strict assumptions and reasoning public goods will be less than supply and demand balance if supplied by a sole supplier.Third, has brought the issue of public goods supply into the transaction cost economic analysis frame, and established the theoretical model of public goods supplier choice criteria, and given the definition of the supplier's boundary by the expansion of Williamson's model.Fourth, has anglicized the main reason, conditions, the types and effectiveness of the public goods suppliers' changes, and through the establishment of the reciprocal evolutional two-level game mode explaining the strategy chosen by public goods supplierFifth, the utilization public goods supplier's choice and the change theory frame analyzed issue of primary education supply in China, and has made the new judgment using the different standard to the choice of primary education supplier. Has surveyed the transaction costs which in the process of primary education supplied by different suppliers, calculated the absolute transaction costs, the average transaction costs and the boundary transaction costs which produced when supply the primary education.
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