On Choosing Legal System To Overcome The Illegal Local-protective Act

The Local-protective Act refers to a kind of acts that have external costs, and are done by the local government. According to the efficiency standard, the Local-protective Act can be distinguished to the legal and the illegal. The later does ham to our country very seriously. And how to overcome it is an important question that is need to be settled. Using the tools of economic and game theory, we find that local government obey the logic of cost-benefit in economic, and if there is not the third's effective interference, the Local-protective Act can't be avoided in the surroundings that local governments influence each other. The rules and regulations in effect in our country can't overcome the illegal Local-protective Act, so we must choose a set of effective system according to the scientific standard for the aim to overcome the illegal Local-protective Act. We hold the opinion that the aim to overcome the illegal Local-protective Act is to make the social efficiency max. We also hold that we must take procedure norm besides positive norm. Positive norm is for offsetting the local government's motive to do the illegal Local-protective Act, and the procedure norm is for putting the positive norm into effect.