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| Analysis of the Optimal Supply Scale， the Causes of Supply Shortage of Basic Public Services |
| Wei Fucheng |
| School of Public Finance and Taxation， Zhongnan University of Economics and Law， Wuhan 430073 |
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Abstract Analyzing the scale of basic public service supply has important theoretical and practical significance. This paper builds a theoretical model in the framework of economic growth and analyzes the influencing factors of the optimal supply scale of basic public services， and finds that the elasticity of various basic public services， the level of economic development and other factors will have a monotonic or non-monotonic effect on the optimal supply scale of basic public services.Furthermore， this paper demonstrates the reality of insufficient supply of basic public services in China and explains why local governments do not have the ability and incentive to make optimal supply decisions for basic public services.In the end， this paper proposes policy suggestions on how to improve the incentive of local governments to provide basic public services with the goal of optimal scale， such as improving the transparency of basic public services and enhancing the research capacity on the theory related to optimal scale of public services.
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Received: 01 June 2020
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2020, Vol. 59 
