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The Analysis on the"Government Failure"in the Supply of Public Goods

MA Xiao-lu

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Abstract

Consumption of public goods refers to the process with a non-exclusive and non-competitive products.In essence,the production of public goods and the market mechanism is contradictory,producers will not take the initiative to produce public goods.The members of the public goods necessary for the whole society consumer goods,it also reflects the state to meet a country's welfare.This will require the government to assume responsibility for provision of public goods.However,the government departments in the provision of public goods,when you tend to waste and misuse of resources,resulting in the scale of public expenditure is too large or to reduce the efficiency of the government's activities are not always as it should be done or,as stated in the theory ofeffective.To overcome this phenomenon,there are three policyoptions:(1)first,market-oriented reforms;(2)constitutional reform;(3)government institutional reform.

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What this paper is about

Consumption of public goods refers to the process with a non-exclusive and non-competitive products.In essence,the production of public goods and the market mechanism is contradictory,producers will not take the initiative to produce public goods.The members of the public goods necessary for the whole society consumer goods,it also reflects the state to meet a country's welfare.This will require the government to assume responsibility for provision of public goods.However,the government departments in the provision of public goods,when you tend to waste and misuse of resources,resulting in the scale of public expenditure is too large or to reduce the efficiency of the government's activities are not always as it should be done or,as stated in the theory ofeffective.To overcome this phenomenon,there are three policyoptions:(1)first,market-oriented reforms;(2)constitutional reform;(3)government institutional reform.

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Available abstract

Consumption of public goods refers to the process with a non-exclusive and non-competitive products.In essence,the production of public goods and the market mechanism is contradictory,producers will not take the initiative to produce public goods.The members of the public goods necessary for the whole society consumer goods,it also reflects the state to meet a country's welfare.This will require the government to assume responsibility for provision of public goods.However,the government departments in the provision of public goods,when you tend to waste and misuse of resources,resulting in the scale of public expenditure is too large or to reduce the efficiency of the government's activities are not always as it should be done or,as stated in the theory ofeffective.To overcome this phenomenon,there are three policyoptions:(1)first,market-oriented reforms;(2)constitutional reform;(3)government institutional reform.

Key concepts: Public good, Government (linguistics), Consumption (sociology), Government failure, Production (economics), Speciality goods, Business, Market failure

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