The Theoretical Study On Governmental Behaviors And Public Goods Provision

With the rapid increase of public demand, the public service system must keep the pace with it as soon as possible. During this important process, the roles government palyed shouldn't be ignored. Not only should we pay attention to whether the government supply public goods, but more important, we should think over the affection of the governmental behavior on the private contribution. There are two different theories about the supply of public goods: governmental provision and private contribute. However, based on the assumption of private contribution, this paper discusses the affection of the governmental behavior on the provision of public in economy.The problems analyzed in the paper include: (1) whether does the government affect consumers'private contributions on public goods? Especially whether is aggregate supply changed? (2) If consumers"vote by feet", whether does the government realize Pareto improvement? (3) How to deal with the relationships between the central and regional governments?Firstly, the paper emphasizes the impendence of demand for public goods and service and necessity of governmental adjustment in the process of effective supply of public goods. Based on concepts and theories of public goods, a mathematical model is built to demonstrate the neutralization of governmental policy in the supply of them. The difference of governmental behaviors is embodied in the policy of subsidy and tax schemes and the governmental roles, which leads to different results. Afterwards, with the assumption of free population mobility in a model with two periods and two regions, the government could maximize social welfare. Finally, policy suggestions are put forward.