On The Proper Supply Of The Regional Public Goods

Regional public goods are those which play an important part in the long-period, continuous and steady development of regional economy during its developing process, which mainly includes institutional regional public goods and infrastructural regional public goods. The subject that provides regional public goods is the whole region. At present, in the providing of regional public goods in our country, insufficient providing and surplus providing exist side by side, and the space is scattered ununiformly while the coordinating and complete system of providing are not still formed. All this is caused by the providing system of regional public goods. Under this system,each district acts according to its aim to pursue the greatest profit. Thus, each district will face with the same demands or fall into the "Prisoner's dilemma" of providing. In order to reach appropriate providing, regional public goods need to satisfy the Pareto Efficiency. The regional public goods provided should make the whole region's benefit maximum and satisfy the need of future developing of social economy. Appropriate scale can be implied from the demand and the production possibility. It's suggested that such policies be carried out during the providing process of regional public goods. Firstly, we must reinforce the providing of institutional regional public goods and establish integrated market rules and the system of profit distribution. Secondly, we must define the providing order of regional public goods while whe infrastructural regional public goods must be provided preferentially and we must leave adequate expanding leeway on the basis of taking the future demands into account. Thirdly, we should bring the providing of regional public goods into full play to put forward the developing of regional economy.