Study Of The Size Of Government In The Chinese Market Process

Some western countries accepted the new public management idea and put it in force cosmically one after another along with the market economy establishing. The general adoption of the market principle is to make the market to distribute the resources basically and the process represents a series of changes and the results of economy connection. The general adoption of the market principle needs a public-service government , that means increasing some scale and decreasing some scale, entering into some field and retreating from some field, Our administrative setups have reformed five times at the thought of big society and small government but it did not get rid of the cycle of decreasing and increasing along with planned economy to market economy, because the government scale not only represents the way of resource distribution and the waste of it, but also represents the social cost. Different scholars have different opinions about our government scale from the perspective of the process of market and economic growth in company with the advance of market economy and the continuance of economic growth rate.The government originates the public need, the existence of the government mades up the market out of order, maintains the social economy to develop, the certain scale existence is the request to the government existing and the function, the government scale is not only a kind of organized form but reflects the resources of government controlling, different structures produces different functions, the general government structure scale has optimum one. In market and economy developing process, the structure of government structure scale adjusts and changes continuously.Speaking from the theories, that the superior scale makes the whole social welfare's max exists, superior scale can comprehend from five aspects: (1) marginal cost is equal to the marginal benefit; (2) the scale can attain the Pareto Optimality; (3) the comparison between internal structure is superior; (4) the government consuming marginal product to be equal to 1; (5) the total amount resources that the government control physically to adjust a reasonable level. In the developing of government, market and the progress of the third section , the government scale is adjusted the balance of incline to the dynamic state and by the dynamic state constantly, the superior scale in government really should be decided by the marginal cost of the government to be equal...