Economic Analysis On Government Trustworthiness

The market economy development is up to today, and people gradually realize trustworthiness is of great significance to the market economy and the economic activity. As the obstinate disease in China, trustworthiness has obstructed its development seriously. We can divide trustworthiness into three basic types: individual trustworthiness, enterprise trustworthiness and government trustworthiness according to the behavior corpus. Although there are many articles about government trustworthiness now, it is scarce to study government trustworthiness by the economic theory. In addition, government trustworthiness is the base of the whole social trustworthiness system, so the economic analysis on government trustworthiness not only is beneficial to enrich economic theories but also is extremely meaningful to current society.The paper under the guidance of the basic economic theory adopts methods of the positive and normative analysis and points out the intention of the government trustworthiness. Besides, the author tries to analyze the general and special reasons and put forward some suggestions for reference.There are five parts excluding the preface in this paper:Part I discusses the basic concepts and hypotheses of the paper. After analyzing the motion of the trustworthiness and the government, the author confines government trustworthiness to government economic behavior. Government trustworthiness can be divided into three types according to the manifestation of the government (official). At the same time, part I displays four behavior assumptions about the official behavior: variety of demand preferences, bounded rationality, maximizing self-interests and opportunism. What's more, two hypotheses are provided about the governmentoipnization that is the bounded rationality of the government organization and pursuingself-interests.Part II analyses the general causes of the losing of government trustworthiness from individual and organization aspects. Both the cost-benefit analysis of officials and government-failure can lead to the losing of government trustworthiness.Part III analyses the special reasons of the losing of government trustworthiness in China. The explanations to the losing of Chinese government trustworthiness are notabundant if we analyze it only from the individual and organization aspects. The author further analyses the special reasons from six aspects in transit period, namely history, system, legality, government, public and property rights.Part IV presents the social effect of the losing of government trustworthiness. It will block economic growth and development, bother Chinese political system reform, result in society tension and destroy international image and investment situations.Part V puts forward a larger number of guidelines on preventing and curing the losing of government trustworthiness. In order to improve the degree of the government trustworthiness and restrain the behavior of government organization, the author explores the measures from seven aspects in this paper, such as idea- promotion, mechanism-innovation, government-construction, system-reformation, institution-perfection, situation-improvement and power-prompting.The paper not only studies government trustworthiness by economic theory but also gives further consideration to the following problems:(l) The inner logic of New Economie Man which is put forward at the first time makes the hypotheses more objective and actual than ever; (2) The concept of government trustworthiness is focused on the economic field and the focus makes it possible for us to examine the exact causes of the losing of government trustworthiness. (3) The paper analyses the general reasons from two aspects and special reasons in China from six aspects. It makes the study overall and thorough.