공공재의 과다공급과 비효율의 최소화방안

The Excess Supply of Public Goods and a Minimization Strategy to Tackle Its Inefficiencies

The model of Korean public goods supply considerably resembles that of France. There is more power concentrated in the higher rather than the lower or middle ranks of the bureaucracy. This is especially true in the case of decision-making power. The phenomenon of excess supply of public goods beyond social optimum demand, appeared under these circumstances. In order to control the bureaucracy’s excess supply of public goods, we should adopt diverse principles of competition in assessing the demand for public goods through various other channels. It is necessary to equip the system with the capability to circulate information among the bureaucracy, government, congress. Also, incentive systems should be adopted so that the bureaucracy itself may minimize the excess supply of public goods. But these proposals can not be adopted as a matter of course, as the over-all costs of an incentive systems to encourage efficiency in public goods supply, could actually outweigh the benefits. Before implementing alternatives, a system analysis should be carried out.