Research About Efficiency In The Provision Of Local Public Goods

Since reform and opening up, China's economic construction has made considerable progress, the people's living standards have markedly improved. But the dissaisfaction on social security, education, medical care, and other aspects is an increasingly prominent. In our case which is the strategic objectives to build a harmonious society, the adjustment of government functions, the determination of the power border between central and local responsibility , the border of the privatization are all we have to properly resolve the issue, and all these problems are with the local public goods efficiency .First of all we have an general theoretical analysis on local public goods efficiency, then will be divided into efficiency in allocation and efficiency in productivity, and to study efficiency in allocation between government guidance and market-oriented, further research on efficiency in productivity between government and market-oriented conditions.This was followed by the empirical research on efficiency in allocation, form the literature, based on the expansion model of Bergstrom,we study that: too many resources have allocated to infrastructure construction and culture, and too little resources have allocated to education and social security; local public goods supply-scale needs to be adjusted: citizens want to increase local public goods per capita municipal spending.This paper has an empirical research in the supply of local public goods in production efficiency. Cointegration analysis is used to reserch production in efficiency of local public goods supply, government departments which has high efficiency of the input and output can be analyzed, the private sector hich has high efficiency of the input and output, and results of empirical analysis are: the private sector in the economic infrastructure of production has advantages.Finally, the relevant policy recommendations are given: different parts of the supply of public goods should adopt the appropriate combination of methods; the allocation efficiency of the supply of local public goods can improve: First, timely adjustment of the scope and structure of government expenditure, the Government improves the allocation of the efficiency of resources. The production efficiency of local public goods supply can also be improved by the following two aspects: First, government looses deregulation to allow private capital to enter; the second is to strengthen government regulation, consumer supervision and incentives of government policies.Finally we should take out dynamic model of public goods supplying.