A Research On Urban Infrastructure Investment And Regulation Policy

The investment on road,water,gas infrastructure can not only make the investment a productive factor directly promoting economic growth but also optimize the existing infrastructure and improve the physical foundations of economic growth,is now one of the important means to grow steady in the economic downturn phase.However,when the government makes urban infrastructure investment decisions,the bigger scale of investment is not better.Too big scale of urban infrastructure investment will produce “crowding out effect” to private capital,so there is a problem of Pareto Optimality,the investment scale,priorities should coordinate with the supply of personal things in the local city and the economic growth,etc.At the same time,urban infrastructure investment is a complex entrust-agent chain,including many bodies of multiple interests,different objective function such as the central government,local government,social capital and so on.This must make conflicts of interest with different subjects in the game,hinder the urban infrastructure construction.Therefore,how to scientifically determine the urban infrastructure investment scale and the order,coordinate the game relation between different interest subjects to make the right investment decisions,improve the efficiency of urban infrastructure investment,has become an important problem to be solved in the rapid urbanization acceleration.Specifically,this paper firstly synthesizes domestic and foreign scholars' research on regulation on infrastructure investment,infrastructure investment system,the optimal investment scale and investment order.Secondly,evaluates the current urban infrastructure level from investment system,level of investment,investment efficiency angles and analysis the regulation needs of reform traditional investment system,improve the control performance,increasing investment,promote competition in the current urban infrastructure industry in our country.Furthermore,from the perspective of the macro economics,this paper builds a marginal output and optimal size framework on infrastructure,chooses road,water,gas infrastructure as typical cases,utilizes 2001-2013 1234 tier cities(127 cities)panel data,empirical estimates of 1234 tier cities infrastructure investment scale and the order,finds that the actual investment scale is fewer than the optimal investment scale,need to introduce social capital and form the structure of multiple investors.Then,Based on the analysis of investors,the paper uses the bargaining game model to analysis the cooperation between the government and the private enterprises and the investment allocation between the central government and local governments,draws a balanced solution.Further,this paper analyzes the main factors of influencing the game result.On the basis of above study,this paper puts forward the regulation policies to improve the city infrastructure investment.We can summary three possible innovation points as follows:1.Base on Barro model,for maximizing economic growth this paper builds a marginal output and optimal size framework on urban infrastructure,utilizes 2001-2013 1234 tier cities(127 cities)panel data and gets 1234 tier cities infrastructure investment scale and the order,estimates the urban infrastructure investment gap.2.Base on the analysis of our country present situation of urban infrastructure investment system and policy system,this paper uses DEA to analyze the current urban infrastructure investment level with the flow and stock of urban infrastructure investment,evaluate the investment efficiency and finds these regulation needs.3.Based on the analysis of double principal-agent relationship,the paper uses the bargaining game model to analysis the cooperation between the government and the private enterprises and the investment allocation between the central government and local governments,draws a balanced solution.