Building Governmental Credit: An Analysis Based On Principal-Agent Framework

According to the theory of social contract,people's authorization is the root of public right,there is clientage between government and people.This article basing on the principal-agent theory, discusses the clientage in political domain, analyze the problems and causations of principal-agent in political domain, then puts forward the countermeasure.This paper is divided into four sections.The first section makes a summary of principal-agent theory .This section mainly expatiates the emergence,development and researchful object of the principal-agent theory,discusses it's application in political domain.The writer considers that problems of principal-agent in political domain arouses the absent of governmental credit.The second section analyze the causations to the problems of principal-agent in political domain,such as essence of Homo economic in political agent,the insufficiency and dissymmetry of the political informations and the puzzle in collective action.Then it explains the more ponderance of the problems of principal-agent in political domain through describing the difference in economics and politics.The third section sets forth the relationship between the problems of principal-agent in political domain and the credit crisis of government. The credit crisis of government causes harms to our society,so we must seek the resolvent and rebuild the governmental credit.Section four brings forward the countermeasures against the problems of principal-agent in political domain, for example, establish the competitive market of political agent,correct the error of governmental function,establish the system of inspiritment and restriction,publish the political informations and put the finer Administration in practice.