A Research on Competent Factor and Supply of Local Public Goods

There are efficiency puzzle associated with the supply of public goods and social choice. The Tiebout model brings into competitive mechanism in government behavior and contributes to improve the revealed characteristics of group preference, and realize the premise conditions of the Pareto production. By using the theoretical model, the authors analyze how the long term equilibrium progress of public resources can be reached with respect to Besley dynamic game process, which simulate competent behaviors of residents, local and central government. Estimation results contribute to identify some competitive mechanism, which could restrict inefficiency resulting from government power. Meanwhile, this research may provide references for the theoretical designs and practical paths in the constraint of realistic institutions, as well as for the supply optimization of local public goods and making associated government regulations.