Public Goods Supply System

Nowadays, the theory of public goods is a research field focused by native and foreign scholars. This article wants to touch its core: the provision of public goods. The study introduces tentatively concepts and methods of economics to this political and administrative field from the prospect of public economic by means of systematic analysis. We will emphasize on the three parts: the fundamental concepts of public goods, classification and models of provision.The logical structure of this study is as follows: firstly, raising questions, analyzing concepts and defining the research scope. This dissertation analyzes some fundamental concepts in the theory of public goods. Based on the characters of non-rivalrousness and non-excludability, the dissertation draws a fundamental arrangement. Pure public goods and private goods respectively lie in the beginning and the end of the arrangement. In order to probe into the providing ways of different public goods and defining the corresponding responsibility of each management subject, we try to classify public goods from the angles of vertical and horizontal dimensions.Secondly, the emphasis of this article is the analysis of provision models. As solutions to the provision of public goods, many systematic arrangements are developed with the following as the three main models: governmental provision, private provision and sovereign provision.The private provision emphasizes the function of the market and holds that private ownership is to be adopted. But the characteristic of the public goods and the difficulties in fulfilling the required conditions for the normal function of the market may lead to market failure as well. The government provision emphasizes the importance of government intervention. Market failure offers opportunities and reasons for government intervention. However market failure is a necessary but not an ample condition for governmentintervention. Factors such as incomplete information, defects of the government decision system may also lead to a government failure. The sovereign provision is actually a development of the previous two models.At last, this article puts forward some proposals on our country and draws some conclusions.