Administration Cost And Its Control In The New Institutional Economics Vision

Lowering administration costs is considered as one of the objectives for deepening reform of the administrative system in the 16th party's congress for the first time. Reducing administration cost is benefit to construct efficient, fair and lower-price government, and strict control of administration costs is also the key factor to improve the administrative efficiency, to prevent rent-seeking behaviors and also to establish a conservative society.The paper define the intension and extension of the concept of administration cost in a New Institutional Economics vision, taking the institutional cost as the inner variable and analyzing the "institution" with an equilibrium method of Classical Economics. The paper decomposes the administration cost into three parts: institution-inner cost, institution-outer cost and the institution-change cost. Paper using the tools of Excel and SPSS software to analyzing the datum in order to explain the facts and find the key factors that effect the administration cost more, and then give the recommendations of reducing administration cost. In the end, the article suggests that in order to reduce the administrative costs ,the government should confirm the boundary of the institutions to standardize the government's size, functions and administrative procedures, to correct and abolish the invalid institutions constantly, to build scientific decision-making system and the financial system to prevent rent-seeking .