A Study Of Mechanism Of Showing Preference For Effective Supply Of Urban Public Goods

With the unceasing development of urban economy, the income levels of the urban residents have been continuously raised, thus there is an increasingly residents' demand for larger quantity, more variety and higher quality of the urban public goods. Since the 1980s, there are significant transformations in the realm of pubic goods including: the tide of Marketization and Privatization, the appearance of the New Management Movement in developed countries such as UK and US, as well as the socialist market economy system reform and public finance system construction in China. We may foresee that the higher level urban economy development, the more important the supply of public goods become.The Privatization tide and the New Management Movement as well as establishment of our distribution tax finance systems play the positive role in the efficiency of urban public goods supplies. Although it had been theoretically realized the equilibrium of supply and demand of public goods on public economics. The urban public goods supplies had still not reached effective supply in the real life in our country.The basic cause of these problems lies in the strong externality of urban public goods, which leads to the preference hiding. Meanwhile, this characteristic can also bring about that the consumer preference can not be displayed truly. Therefore, how to design an effective preference mechanism of public goods is the essential premise to solution the problem ineffective supply.Based on the theory of public goods and the theory of public choice, the thesis explores the mechanism of showing preferences for effective supply of urban public goods. I initially embarked on analyzing the situation that the supply of urban public goods is insufficient in our country. Then after consulting as many literatures with respect to public goods research as I could get, I proposed that the urban public goods' substantive characteristic is "the society common needs", besides the common characteristics of other public goods. I subsequently analyzed the in-depth meaning of urban public goods' effective supply through general principle of equilibrium of public goods' supply and demand. Because our country's traditional supply institutional arrangement of urban public goods is the from central authorities to local authorities policy-making system, the key factor ,which curbs the effective supply of urban public goods, lies in the suppliers have no access to holding the citizens' preferences accurately. On one hand the citizens hide their preferences for the strong externality, on the other hand people are lack of suitable expression channel for the urban public goods. Through reaching into the mechanism of showing preferences such as Second-Price Mechanism, Clerk Mechanism, "voting by foot" of Tiebout model and "voting by hand" in public choice theory, I put forward my views of how to improve our country's preferences expression mechanism: Under the premise of bettering the distribution tax system, which takes dividing affair authority as its foundation. The most urgent thing is to better the expression mechanism based on "voting by hand". It is supplement that we should establish expression mechanism of "voting by hand" as soon as possible.