An Approach To Choice Of Effective Measures Of Supply Of Public Goods By Government

This paper analyses the problems of supply of public goods by governments in market economy and finds out some similarities in market economy. Based on this analysis, the problems concerning the formation of China's public fiscal system - tax assignment system, are proposed in the light of Chinese characteristics, which plays an important role in the supply of public goods by Chinese governments during the course of socialists market economy.Introduction. The relationship between market and government as the basis, and the supply of public goods as the starting point, the problem of why and how the government supplies public goods is introduced.Part One The basis of supply of public goods by governments. Beginning with the contradiction between market and government, this section analyses the characteristics of public goods and concludes that it is beneficial that the government can and must supply public goods if the market can not.Part Two The analysis of influence of influence of effective supply of public goods by governments. This section deals with the disadvantages of supply of public goods by governments from seven aspects: extemalism, monopoly, operation profit, bureaucrat ism, excessive intervention, limited information and demand preference. Part Three The analysis of influence of "vote with hand" the mechanism on effective supply of pubic goods by governments. This section mainly touches upon the influence of Lindale model, wick sell model and the majority of votes mechanism on public goods, pointing out that these can help governments solve problems of public goods on the one hand, and on the other hand there are some problems with voting system and these cannot solve them all.Part Four 'The analysis of influence of "vote with foot" on effective supply of publicgoods. This part focuses on the "vote with foot'" mechanism of Timeout, and concludesthat the supply of public goods by local and central governments through the division ofpower is important, necessary and effective. However, the mechanism of "vote withfoot" can not solve all the problems of supply of public goods.Part Five. The analysis if influence of fiscal transfer expenditure system of effectivesupply of public goods. Since the "vote with foot" mechanism can mot solve all theproblems of supply of public goods, the fiscal transfer expenditure system works as acomplement of it.Part Six The analysis of some conclusion of supply of public goods by governmentsin market economy. Based on the analysis of each section, this part explores the issue ofsimilarity of supply of public goods by governments, and deducts the system of taxassignment fiscal management.Part Seven The analysis of supply of public goods by Chinese governments. Duringthe transformation from the plan economy to socialist market economy, the issue of howthe Chinese government changes the way of supply of public goods, progress thegovernment has made and current problems are dealt with in this part.Part Eight The choice of measures of effective supply of public goods bygovernments. Through the approach to problems of supply of public goods bygovernments, and the past and present of China, the measures of improvement ofefficiency of supply of public goods are put forward from six points: fiscal expenditure,fiscal revenue, government self ?management, democratic fiscal managementmechanism, the process of urbanization and fiscal transfer expenditure system.