Research On The Promotion Tournament Incentive System

Promotion tournament system has the function of talent configuration and executiveincentive,Plays an important role to promote China’s political and economic reform.In thispaper, China’s economic structure transformation and change of government function as theresearch background,Discusses the issue of China’s local government official promotiontournament incentive system.In a double entrust--agents theory framework from theperspective of the whole society,The public as a client,The social comprehensive managementand administrative law enforcement entrusted to the government,The government as agent toperform the corresponding functions and enjoy the corresponding rights;From the point ofview of government,The government organization as the principal,Delegate governmentofficials exercise related functions,The government officials as agent is responsible for thegovernment organization.Under the framework,With China’s economic structuretransformation and change of government function as the background,Mainly studies theprincipal cannot be directly observed in the process of government management agent effortlevel and the client can’t get the agent more personal information about other exogenousvariables,How to use tournament theory under the condition of asymmetric information todesign a set of incentive compatibility contract mechanism,Inducing agents from their owninterests,Make its maximum limit in the interests of the principal goals,Thus agent reduce themost possibility of adverse selection and moral hazard problems.Paper mainly adopts literature research, theoretical analysis, comparative analysis andother research methods,The empirical analysis of economics combine the normative analysisof public management and political science, Especially use the game theory as the basictheoretical analysis tools, using multidisciplinary perspective analyze the problems.Althoughpromotion tournament theory in recent years was introduced into the public domain to analyzethe public policy issues,but earlier research are mainly related questions of the privatesector,And has formed a mature research results and the theoretical system.Why in the privatesector has effective system,but in government departments become incompatible incentivespolicy,In order to bring the principal-agent relationship is relatively simple relevant systemsof the private sector to better migration move to the more complex the public sector,On thebasis of through a large number of literature reading,With the method of comparativeanalysis,Analysis the their similarities and differences,Join the relevant variables,In the hope of system migration conforms to the social reality.At the same time, adopting the analysis ofrelevant theories of the new institutional economics and the micro information economics toresearch promotion tournament the incentive distortion and mechanism design problem.Paper main body part, first of all, demonstrates that China has implemented a promotiontournament precondition of political and economic system,by building a two-stage dynamicgame model analyzes the promotion tournament mechanism principle of work,and analyzesthe model of the specific theory.Second,promotion tournament is introduced from two aspectsof positive and negative incentive to agent.From three micro perspective of the promotiontournament for the spirit, material status, power of the local government officials, and twomacro perspectives of to promote China’s economic growth,to improving localgovernance,respectively analyzes the positive incentive system.From the perspective ofthree,include the official personal influence,economic development impact and the influenceof change of government function,respectively analyzed the promotion tournament reverseincentive for local government officials.Third,build a two-stage dynamic game modelanalyzes the promotion tournament when there is moral hazard the trustor,the agent is how tomake the individual behavior choice interests game.At the same time from the multipleperspectives analysis in the game process of the Promotion tournament why has the principalreasons of moral hazard.Finally, according to the principal-agent theory,Mechanism designtheory and contract theory put forward China’s local government promotion tournamentsystem contract incentive design Suggestions.