An Exploration On The Price Performance Ratio Of Pure Public Goods

As far as the public is concerned, tax is the burden he has to bear to consume public goods. Whether the utility that the public enjoys from consuming public goods matches the sacrifice he suffers from paying tax, comes down to the matter of price performance ratio.In practice, analysis on the price performance ratio of pure public goods helps to avoid the shortage or surplus of pure public goods, change the pattern with more focus on quantity than on quality, and improve public tax compliance; in theory, it contributes to further research on matters like public goods preference, and the rights and interests of tax payers. Besides, it is conducive to making financial research direction regress from government analysis to individual analysis.Price performance ratio of public goods refers to the ratio of the capability and the cost of public goods. In the economic perspective, it means the ratio of marginal utility and marginal cost of public goods. Social resources meet the peak of efficiency when the price performance ratio of public goods equals to that of private goods.The appraisal of the price performance ratio of public goods is a very complicated problem. This thesis constructs an evaluation model with three procedures and four elements, upon the foundation of which the evaluation index is designed and an evaluation method discussed. The three procedures refer to gathering information for evaluation, feeding back the evaluation result and utilizing the evaluation result. The four elements refer to the public, government, evaluation institution and public goods.Based on the aspects of information insufficiency of the political market, marketing structure of pure public goods, and the motivation of the officials'actions, this thesis concludes that the price performance ratio of pure public goods is on the low side. This conclusion has been confirmed by related research findings in the academic world, and verified by analyzing the results of questionnaires.When faced with low-level price performance ratio of pure public goods, should the public choose voting with foot or desire expression? The paper chooses the latter over the former because, in fact, voting with foot means abandonment of the pursuit of legal rights and interests. To seek desire expression is a difficult problem in public economics. However, expressing desires respectively can show the authenticity of preference better and expressing desires with divisions may lower the possibility of voting circular problem. Furthermore, with the Internet, both the authenticity of desire expression and its transaction cost may be increased.The mechanism of direct accountability based on desire expression is one of the major ways to improve the price performance ratio of pure public goods. Direct accountability means that the public has the right to make the government accountable for their duty directly. The accountability for the price performance ratio may have various influences. For example, the rights and interests of tax payers will be better expressed and maintained; local pure public goods will depend more on lower-level local authorities to provide; public budget will reflect the contrast result between the cost of pure public goods and their profits.The innovative points of the thesis are as follows: the concept of"Price performance ratio of public goods"is defined exactly for the first time; desires expressed respectively or with divisions or via Internet can reduce the difficulty of preference display and summarization; and the policy suggestion to improve the price performance ratio of pure public goods is to put direct accountability mechanism into practice.