The Effective Supply Of Public Goods: A Research Based On Government's Ability

Since1978, especially with the strengthening economic ties between different countries after China's accession to the WTO, China's governments prompting regional development at all levels have to face unprecedented challenges. Now, China is striving to build a higher-class megalopolis, which challenges the ability to supply public goods efficiently more. Therefore, from the regional economics to scrutinize the quantity and structure of public goods that megalopolis city governments supplying is the indispensable meaning of deeper regional opening and regional harmonious development.Providing public products is one of the most important and basic functions of the regional government. Objectively speaking, the capability to lead economy of China's local governments increase soon, however, still fails to meet the rapid development of the regional economy requirements, for example, the supply of regional public goods is on the need for reform. At present, China's local governments invest economic public goods and social public goods differently. Social expenditure is less than economic expenditure. This has affected the ability of the regional economy further upgrade, thereby affecting the smooth construction of a harmonious society. Therefore, based on the composition of the government capacity, analyzing the relations between the ability of the government and the supply of public goods, and comparing the affection between the two systematically, has obvious practical significance.Firstly, this paper makes carding and evaluation about the domestic and international theoretical foundation, research methods and progress of government ability and public products. Secondly, this paper uses the niche theory to build the corresponding indicator system and model to measure the Nanjing megalopolis government's ability, and explores local government's supplying public goods during the period of transformation. Then, in view of local government deficient in social public expenditure, this paper builds a quantitative analysis model to analyze the situation. We find out that building a good political environment and correct"political concept"help improve the structure of the social public goods supply. Finally, this paper takes Nanjing megalopolis social public goods supply as an example, through the Markowitz portfolio selection model to analyze and test the public goods investment behaviors of Nanjing megalopolis and gives some recommendations.