Market-oriented Model Of Public Goods Supply

The conventional justification for the provision of public goods is market failure since the demand of society to public goods is objective. To provide public goods is obligated for government and is its basic function naturally. Although the monopoly provision of government can solve the problem of "free-ride", government can't still play a perfect role in this field. Recently more and more problems have brought to public attention such as, low efficiency, insufficient supply and lack of fund. Therefore, it has been becoming the common target for all the government to pursue to find an effective way of provision to meet the increasing demands of public under the limited finance.This paper discusses the provision efficiency of government on the base of the Public Choice Theory, then analyses the market model, which has been very successful in the New Public Management Movement. This paper argues that market model has its own advantage of high efficiency to improve the quality and quantity of provision. And it's a very significant way to remedy the government failure contrast to the traditional view of market failure.Firstly, in this paper, the nature of public goods is described and the reasons of low efficiency, supply shortage brought by the government monopoly provision have been discussed. Secondly, through the investigation of New Public Management we can find that it's inevitable to apply market model. Also the possibility and the boundary of the market model have been discussed. Besides, the main ideas, the detail process, and the advantage of the efficiency of the market are analysed. Some problems should be noticed pertinent to the market is especially being pointed out Finally, this paper make some analysis about the issue of market model in China.