The Study Of Supply Of Local Public Goods Running By The Community

Local public goods is the quasi-public goods to some extent. It is public goodsfrom the respective of regional economy. It still has the feature shared by generalpublic goods in essence. It mainly plays role in one area, usually consumed by theconsumers in certain region and has an important influence on the development ofregional economy. In traditional theory, It is believed that all public goods includinglocal public goods must be offered by government and it is inefficient if offered byprivateers from the respective of market ineffectiveness. However, The theory ofpublic option and property right theory have proved that it is feasible that quasi-publicgoods is offered by privateer from the respective of the relationship betweengovernment and society and property right, which is the theoretical foundation of localpublic goods privatization. At present, community capital of our country developsrapidly. However, the supply of local public goods is deficient and in efficient.Additionally, our country has enacted a good many of policies and measures thatencourage local public goods privatization. All the above offer realistic feasibility forthe local public goods privatization, but it can not be denied that there are still someobstacles in the aspect of supplier channel, pricing and governmental supervision forlocal public goods privatization. Privatization can be realized through a lot of differentways. Three methods chiefly adopted in foreign countries are entrusting authority,removing capital by government, and government disappearance. At present, themethod of special permission of managing is usually and adopted in our countrydifferent pattern can be chosen according to different local public goods respectively.Such as: BOT, TOT, BOO, the pure pattern of privatization and pattern of PPP. Nomatter what kind of pattern, there are a lot of successful examples home and abroad.The most successful experience among them is standard operating. It is price that theconsumers care most after local public goods privatization. In theory, the efficientstandard that the local public goods seeks in the process of pricing is Pareto optimum.But in actual life it can't be realized, so the cost of excluding and the problem ofcrowd need to be solved urgently. Many economists carried out studies in this respect.Oakland (1972) has developed a model, which not only clearly derivated optimumoffering condition of local public goods crowd, but also embraced excluded costs intoits model further. However, it has many defects still. As a result, in actual operation,the reasonable standard of pricing should be followed and the reasonability of local public good pricing and public charge should be enhanced. What is more important is that the supervisor and management for local public goods should not be ignored. Only when the superintendence is strengthened, the success of the reform of local public goods can be guaranteed.