Negative Externality Analysis Of Chinese Government's Investment In Higher Education

The function and meaning of higher education has gained the consensus of the academe and society.But the unemployment of people with high academic qualifications has also been commonly concerned. On the premise of government's intervention in the investment in higher education, this thesis takes the view of its negative externality, analyzes the adaptability of government's intervention. Generally speaking, the negative externality of government's investment in higher education is impersonal and inevitable, however, the efficiency is not well due to the following aspects: the lack of trend analysis before investment, the structural disfigurement during investing, and the deficiency of capital management after investment. So the corresponding negative externality is increasingly severe, and the unemployed number of people with high academic qualifications is increasing. Definitely this problem not only causes a waste of social resources, but has an impact of instability on structuring a harmonious society. Therefore, this thesis is trying to settle these two issues: firstly, to reset the theories on the effect of government's investment in higher education; and secondly, on this base to analyze the negative externality of government's investment in higher education.