Government Public Service Outsourcing Principal - Agent Problem

Contracting out of public services means that the Government will be the mechanism of market competition into public service supply process, from business or non-governmental organizations to provide services, government contracts will be used to provide the functions of public service transferred to the private sector or non-governmental organizations. At present, the world many countries have adopted a way of outsourcing public services to provide public services, aimed at reducing expenses, streamlining the size of government, improve the quality of public services. Western academic study of the outsourcing of public services has been more mature, but China's administrative outsourcing of public services academic research is still in its early stages. Based on the principal - agent perspective, an analysis of outsourcing in the public service commission - the agency problem and associated options, incentives, constraints and oversight mechanisms, on the basis of the outsourcing of public services in the principal - agent problem solution a systematic study.Chapter I is preface, this paper mainly introduces the background and the research situation At home and abroad, as well as the definition of related concepts, and raised the research questions.Chapter II focuses on the contracting out of public services based on the theory that the government and the market functions of the division of labor. As a result principal - agent relationship exist in contracting out of public services, it is bound to have a principal - agent problem.Chapter III based on the principal - agent theory analysis of the contracting out of public services in the process of principal - agent relationship, the first tier are the public relations between the Government and principal - agent relationship, second-tier relationship is the relationship between government and enterprises or NPO.Chapter IV discusses the main problem of contracting out of public services in the first-tier principal - agent chain, then discusses the main problem of contracting out of public services in the second-tier principal- agent chain, and targeted separately analyzed the two-tier principal - agent problem deep-seated reasons.Chapter V focused on building a principal - agent relationship between the contracting out of public services under an effective mechanism, including the agent of selection mechanism, incentive mechanism, binding mechanism and supervision mechanism.Chapter VI is the conclusion of the thesis and summed up the limitations discussed in this article.