Research On The Payment Incentive Mechanism For A District Government In Tangshan

The government payment system is an important part of the whole society’spayment system. It is relatively special, which relates to the economic interest of theindividuals, and also relates to the social equity and the objective value. It is crucialfor the government to attract talent, to keep the human stability, to increase thegovernance efficiency. To some extent, the payment incentive system decides theefficiency of the whole government system.Firstly, the research describes the importance of the civil servant paymentincentives mechanism. Secondly, we give the background and the basis theory of thewhole research, and the present payment incentive of a district in Tangshan, isdiscussed.And the inventive theory is introduced. Thirdly, the adverse selection andmoral hazard models are used to analyze the current payment system in a district inTangshan. Fourthly, a simple questionnaire is applied to give deep eye on the excitingpayment system. Fifth, some ideas of designing the regional compensation incentivemechanism for the district in Tangshan, are given according to the adverse selectionand moral hazard analysis. Finally, the overall summary of this research is given.This research’s focus and innovation is,(1) the application of adverse selectionand moral hazard theory into the government payment incentive system in a district inTangshan.(2) the use of a questionnaire survey to find out the problems of theexciting payment system.(3) according to the adverse selection and moral hazardanalysis, we give some ideas of designing the regional compensation incentivemechanism for the district in Tangshan.