Study On The Elasticity Of Public Service Supply In The Flowing Factors Situation

Because of the public service has the non-exclusive and non-competitive, the number of customers is no impact on the number of the public services. So in the form of the public financial, there is no discussion about the elasticity of the public service supply. However, most of the public service which is provided by the government has not completely non-exclusive and non-competitive, When the factor flows, improving the supply of public service become one of the methods to attract the factors used by many countries. So the non-exclusive and non-competitive of public service doesn't give a denial to the relativity between the supply of public service and the number of the factors. In order to review the relativity between the supply of public service and the number of the factors, and the result that the flow of factor effect on the public service supply, It is important to analysis the sensitivity between the supply of public service and the number of the factors, thus we provide theoretical explanation and policy ground for local governments on how to improve public services in accordance with the requirements of the flowing factors.The full text is divided into six chapters. The first chapter is the introduction, it analyzes the topics background, purpose and significance, and summarizes the relevant literature, and highlights the research the public service supply in the flowing factor situation. Chapter 2 is the Analysis about the theory of public service supply, and advances the conception on the elasticity of the public service supply. Chapter III is the Analysis about the elasticity of the public service supply with the two region model. Based on the research of Chapter III, Chapter IV is the Analysis about the elasticity of the different style public service supply. With the model about the flow of capital and labor, Chapter V is the research on the elasticity of the public service supply in different flowing factor situation. Chapter VI is the part of empirical, which evident the result of last three parts. Finally the conclusions and outlook, sorts out and reiterates the results and conclusions of this study, and prospects the follow-up research.Based on the research of J.Buchana 's "club theory", uses the method of spatial economic analysis, establishes flowing factors as a focal point, advances the conception on the elasticity of the public service supply. According to the standard spatial economic analysis, with the preposition that whether the factors flow or not depends on the difference of the factor income levels between regions, a Nonlinear General Equilibrium Model has been formed on "two regions, two sectors (public and private sector), two elements (mobiling- elements and non-mobiling elements)". With the method of numerical simulation, we discuss different roles of different variables, such as commodities elasticity of substitution and the transaction cost, influencing on the elasticity of different style of the public service supply. In order to discuss the elasticity, which the flow of capital and labor effect on public service. A "two-region, two-factor" model is established on the basis of Cobb-Douglas production function to discuss the effect of public services and taxation policies on the flow of different factors. Discussing the elasticity in two different situations that the flow of labors has cost or hasn't.With the data of 31 provinces from 1997 to 2005 years, the paper still establish a statistical model to validate the relation between the expend of finance and TFP. It almost improves the result we have proved in the research of theory.