Local Study On The Effective Supply Of Public Goods In China

The effective supply of the public goods is always an important and controversial issue in western economic. The public goods can be classified national public goods and regional public goods. The present research always focuses on national public goods and neglects regional public goods. So it is meaningful to research the effective supply of regional public goods.To begin with , the paper defines regional public goods and its characteristics, and researches its station; then finds that the lack and surplus exist at the same time in the supply of regional public goods. The paper finds the following factors results in the lack supply of regional public goods: first, the flaw in the revenue system; second, the distortion of the regional government behaviors results in the uneven supply of the regional public goods; third, the single provision pattern induces the inefficient supply of the regional public goods.The paper concludes that to solve the question in the supply of the regional public goods, the related system must be reformed first. The reform includes: perfecting the present fiscal decentralization system and ascertain the Central and the local governments' responsibilities respectively; optimize the local government' s expenditure structure and make sure the local government to supply the regional public goods; according to the experience in the developed countries, set up a multiple provision pattern to replace the single one and improve the supply efficiency.