Constructing New Local Financial Competition Mechanism Under Guidance Of Public Accountability

In China the relative centralization of state transition,especially under the background of the relatively "strong" the local government, the relative "vulnerable" the public, the activities directly affect the region economy development trend in the market. In the central government's assessment system, there are various forms of competition between local governments. Many scholars' research shows that our fiscal decentralization guided by the competition between the regional government. For long-term economic growth is the "mystery". The local government competition activities and mainly through the local financial competition shows, and explore to economic and social harmonious development of the local financial competition mechanism has a very theoretical significance.The first thought of local financial competition is the American economist Tiebout, in his paper of pure theory expenses published in 1954 years which mentioned the famous financial federal system of "vote with their feet" model. The hypothesis of the model, while in reality are hard to follow, but the competition theory which is introduced to the government has the extremely profound influence. Then, the numerous well-known economists such as Oates, Buchanan and Musgrave added to the supply of local public goods which is the first generation of the fiscal decentralization theory. But along with information asymmetry of information economics theory is introduced into the fiscal decentralization theory, to QianYingyi and Weingast, representative of the second generation of the decentralization theory, they began to use political and economic incentive and restraint mechanism form the central government to the local to analyze the influence of competition mechanism. At the same time, many domestic scholars such as ZhongXiaomin, PiJiancai began to focus on local fiscal spending and on the effects of spending preference to the economic growth. More and more scholars began to study local financial competition triggered by fiscal decentralization, and theoretical study also gradually be enrich and perfect. This article tries to be within macroeconomic framework system, with the aid of the local financial competition theory, the macroscopic level analysis Angle is established, China's economic and social development will be further understood in this level and the potential will be dig out. First of all, from the analysis of the local financial competition effect, existence of local financial competition begins to be cleared. Secondly, according to the historical evolution of the local financial competition, it will be discussed in different guiding role for local financial competition mechanism. A new mechanism of China's current economic and social situation will be shaped through the modification of the Bo model, which will be considered as the overall frame work of analysis and demonstration in the paper. Different from the research through the tax competition and financial expenditure of the local financial analysis Angle competition system, this paper focused on the research will be based on public accountability under the guidance of local finance their long-term operation management ability (endogenous development ability of local finance) competition to study local financial competition system the overall effect Different from the research through the tax competition and financial expenditure of the local financial analysis Angle competition system, this paper focused on the research will be based on public accountability under the guidance of local finance their long-term operation management ability (endogenous development ability of local finance) competition to study local financial competition system the overall effect. Through the reference to the economics thought theory, the society will be divided into political market and economic market. According to the public accountability under the guidance of the local financial competition mechanism model system construction, impel the local government for a long time to meet people spontaneous public product and the service needs stimulation mechanism and restriction mechanism. At the same time, under the premise of such loose assumptions, the author attempts to analyze the performance and results of the local financial competition mechanism under the public accountability.