The Analysis Of Administrative Costs And Its Control Based On New Institutional Economics

Administrative costs is an important aspect of the study of public administration.At present, controling administrative costs become one of the objectives of public administration reform in almost all countries of the world. In China, the 16th Party'congress report for the first time formally proposed lowering administrative costs was considered as an important part of the reform of administrative system in the new period. Reducing and controlling administrative costs is the essential factor to improve the administrative efficiency and to establish a conservation government.This paper is in the aim of benign governancing administration costs and use the New Institutional Economics as a thoretical tool to explore the riching and widening the study perspects in this field.This paper considered insititution as an internal variable and analysis the balance between the supply and demand of institution by economic methods and considered the unbalance of supply and demand of institution as the main intrinsic reason.Then,this paper uncoverde the origin causes of this problem in institutional arrangement perspective and proposed effective recommendations.In the structure of this paper, first of all, the paper made a description about the study achievements of administration costs and the branch of New Institutional Economics both domestic and abroad. Combination of the ideas on NIE, this paper made a new definition and classification on administration costs more realistic and appropriate.Then, this paper considered that the main problem of administration costs in China attributed to total excessive, rapid growth and negative control by analysised and compared large amounts data of administrative costs.Further, this paper analysised the factors of administrative costs in the New Insititutional Economic perspective, discussed the state of administrative costs in both equilibrium and non- equilibrium situation, developed the mathematical model about administration costs and explained it. And then, this issue summarized the root of the problem of administration costs in China as follows: institution design flaws, institution working un-smooth, institution change anomie and misleading of informal institution. In the last chapter this paper proposed the choice to solve the problem mentioned above which including three section: the values, the objective and the methods.The choice is of systematic and rationalized recommendation for solving the problem of administration costs and its control.