Under The Market Economy The Government Effective Intervention Study

The research of effective government intervention under market economy takes the society which moves the market economy as the research background and takes the government intervention theory as the foundation, which puts forward the proposition of effective government intervention on the premise of affirming government intervention. This proposition emphasizes "effective", which pays more attention to the effect and value of government intervention. So how to avoid the invalid government intervention and its possible negative effects, to enhance the effectiveness of governmental intervention is the main research target. Therefore, explore the reasons that affect the effective intervention of the government to suit the remedy to the case. The measures to improve the efficiency of government intervention give the help and breakthrough to "effective" in the general sense.This paper expounds the government intervention and "effective" in detail respectively, gives a general overview of the conventional mechanism and historical development of effective government intervention. This article also explores the theoretical origin of effective government intervention, such as inspiration from the theory of public choice, public goods, and limited government, which is the theoretical foundation of the full text. Although in theory the government intervention has had a higher degree of understanding, but in reality, ineffective government intervention phenomenon is often seen, such as the unstable macroeconomic, market failure does not alleviate, inefficient allocation of resources. There are three main reasons that lead to the ineffective government intervention. First, the relationship of government and the market is not handled properly, such as the alternative confusion and the loss degree of complement and the differences of excludability and the plight of the common failure; Second, the roles the government plays in the run of the economy are not in place will easily influence it playing various economic functions, and indirectly affect the efficiency of government intervention; Third, government failure, this is finding reasons from the own internal of government. It provides the environment for the ineffective government intervention such as working ineffectively and intrinsic effect and self-aggrandizement and rent-seeking. Thus to improve the efficiency of government intervention, we must comprehensively and systematically to regulate them. Firstly, objectively established the six principles of intervention; secondly, actively avoid the lack of external markets, put an end to the market failure; finally optimize government internal environment, avoid government failure. Today, more and more integrated global economy and information, economic and political environment changes rapidly, the government’s public sector will also face greater challenges and pressures. Improving the efficiency of government intervention also has some practical significance in the government’s self-development and anti-stress increase.