Government Failure: From The Angle Of Society's Demand And Government's Supply

In the field of academic study, the main two of the expounding about government failure are public choice theory and the non-market defect theory. The common thing between them is the fundamental precondition, using the hypothesis of rational economic man. This paper analyzes government failure from a practical angle: on one hand, market failure demands government's interference, because of many reasons, market defects have been exaggerated, which leads to too much interference from the government; on the other hand, as the own characters of the government's supply, the separation of cost from income, it is hard to measure the productivity of the government, which is short of a mechanism to terminate. With a long time, too much government's supply will result in government failure, leading to the larger scale, the lower efficiency, and the rent-seeking of the government, etc. As far as the reasons of the government failure are concerned, from the angle of society's demand and government's supply, this paper puts forward some feasible viewpoints to solve the problem.