The Analysis Of Production Efficiency Of Local Public Goods On Different Financial System In China

Resources are limited, while the social demand is infinite. The current situation of public expenditure of our country grows fast year after year, but the cost of public product rises quickly, and the quantity and quality are not synchronous growing. In the case of limited resources, improve the supply efficiency of communal product is the realistic choice. While the supply efficiency of communal product contains the configuration efficiency and production efficiency. To explore the production of public goods and find the root of the problem, optimize the allocation of limited social resources is our urgent need to solve the problem.So this paper will discuss the relationship between local public goods efficiency and different fiscal system. Firstly, this paper introduces the essential theory of local public goods support, the course of transitional fiscal system and the relationship between them. Secondly, we use DEA to analyze the efficiency in basic education, basic medical care and basal establishment. We find that the efficiency of basic education and basic medical care is lower than that of basal establishment. We make a conclusion by comparing Unitarianism and decentralization that basic education and basic Medicaid are answered for local government and basal establishment is answered for central government. There are many problems in public goods support. First, it’s not clear between the partition of businesslike power and fiscal power and therefore local government has taken too much responsibility. Second, system of tax distribution is not put into practice in local government. Third, hand voting and foot voting don’t work because of the limit of Household registration system and Official appointment system. Our country with GDP as the core of the relative performance evaluation mechanism caused by the local government paying attention to basal establishment and despising basic education and basic Medicaid. Thus, this paper puts forward corresponding policy suggestions:rational division should be made between the central and local governments; giving the local appropriate independent tax rights; strengthening foot voting mechanism, public satisfaction should put into performance evaluation of officials, enhance hand voting mechanism; change the existing performance evaluation system of political motivation.In this paper, the innovation lies in:reviewing relevant literature, I found that the domestic scholars focused on the discussion between fiscal decentralization and economic growth (such as Fu Yong), the local tax competition (such as Zhou Li An), government corruption (such as Zhang Jun) and area difference (such as Zhang Jun, Chen Shi Yi), fewer scholars discuss fiscal decentralization between efficiency of communal product supply relationship. Therefore, the paper selects Du Jiang Yan city as a local government representative.At the same time, the deficiencies of this paper lies in:I choose Du Jiang Yan as the representative of the government, it may be not the best choice; the data can not cover all public products; I can not use DEA much better, and this what I must study next time.