Study On Multiple-Center Supply Of Public Goods From View Of Public Characteristic With Discussion On Chinese Public Goods Supply

Public characteristic is a concept which has various interpretations. It is necessary to keep two dimensions on the situation of public goods supply, at first , from the concept appearance, Pareto optimum behaved of public effectiveness should be considered. The reason is that the public utilities can not be appeared because of externalities of public goods making Nash equilibrium to be the result of public supply instead of Pareto optimum with Public characteristic. Secondly, justice should be appeared to support the Public characteristic for ethics concerned public goods. From the two dimensions, a situational definition on Public characteristic of public goods is come into being.As a governance method featured its own basic value and practical operation, multi-centers theory want provide the solution for public goods contain .The theory seek the maximal possibility of compatible relationship between government and market to form the multi-centers through endowing selective right and institution arrangement. Practically, the multi-center supply is implemented through multiplicity of supply body and multiple unites.As fundamental theory of multi-centers system, the analysis on transaction cost is the key point in institution analysis. Through the comparing on transaction cost among the different method of supply, especially in informational distribution, characters of different supply method were analyzed throughout, from which the theory of "multiple-centre" has been developed. Nevertheless, the single method that evaluates the effectiveness of institution by the numbers of transaction cost does not meet the requirement of public character on the goods. Practically, quite a few behaviors which incur transaction cost guarantee the public character on the goods. Consequently, a new kind of value evaluating of transaction cost should be recognized in the analysis on public goods.Additionally, the separation between supervision and production change the supplying method of operation as a system and process of effectiveness achievement. The separation makes two results. The first is boosting the function of bureaucracies on value distribution from statue of authority, which were production orientated previously. Secondly, bureaucracies would legally pay more attentions to profit instead of duties for publics. Both of two results can boost public goods supply in efficiency. Nevertheless, the possibility of which capture was incurred on government is enhancive for profit orientation on business organization. As result, the output of public goods would be distorted that can be embodied by overproducing in some kind of public goods. The overproducing would be serious by cost decreased resulted in sufficient competition in the cause of governmental purchase. The distortion would cause Pareto optimum and justice can not be appeared as well as Public characteristic. The ways to deal with the problem are to emphasize the self-decision and give suitable scope in supply.The core status of government in public goods supply has been changed into multiplicity because of transformation. The transformation has decreased Public characteristic both in inaccessibility on Pareto optimum achieved and justice. The former has embodied in output distorted and the latter mainly incurs in inequality of effectiveness distribution in medical care and fundamental education. There are four matters caused the results. Firstly, the transformation led a heavy dependence on marketing system. Secondly, the traction cost as a valuable issue and publics participation in the course of separation between supervision and production has been ignored that decreased Public characteristic. The third is simplification on decision mechanism. At last, inadequate decentralization of authority in finance between central government and local government has made weak self-supply of local government, which has got rid of Public characteristic.As a conclusion, in the transformation of public goods supply, the value of Public characteristic should be regressed through the value rebuilding, public participation and institutional construction.