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From the viewpoint of The New Institutional Economics A study on Government Purchase Institutional Change

Abstract
Based on the latest concepts of economics, this study is aimed at the evolution of purchase system. At the same time, it analyzes the purchase system of the government on the basis of the theories of transaction costs and principle agency. In the purchase system of the government, there exist uncertainties in bureaucracy and firm. Due to these uncertainties as well as imperfect information and boundary rational policy-deciders, in the process of purchase, the dealers and buyers entertain the mind of opportunism. With the enactment of purchase system of the government, which specifies all kinds of procedures in order to reduce the uncertainties of dealings, and to lower cost price of dealings. The procedure of the government purchase, from the beginning of budget list to the completion of contract, has to go through the close check of councilors, public officials, bureaucratic organization and manufacturing companies. This study, depending on the theory of principle agency in a new institutional economic system, tries to understand the connection between the councilors, public officials, bureaucratic organization and manufacturing companies in the government purchase.
The government purchase has to serve both political and economic purposes; therefore, while making the purchase, the government has to consider two main principles---the political fair principle and economic profit principle. That¡¦s the reason why the government will get into two dilemmas while working out a system of purchase. One dilemma that the government purchase system faces is that any purchase system cannot surely serve both political and economic purposes. Because of this, some unpreventable corrupt practices in the process of the government purchase will appear. Thus, to balance the political fair principle and the economic profit principle, the government can¡¦t help but turn a blind eye to corrupt practices. The other dilemma is that, with an eye to attaining these two purposes, the government purchase system will unavoidably cause some troubles to the society, that is, the government purchase system will tempt participants to have the motivation of seeking for renters. This study will apply some newspaper reports, court decision and official document as its data and cases of analysis.
The efficiency of the government purchase has a great influence on the image of the government the enactment of the law of the government purchase can largely decrease the number of participants who seek for renters. However, the duplex purposes of politics and economy will cut down the efficiency of the government purchase system.

Identiferoai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0808102-151719
Date08 August 2002
CreatorsChiu, Chan-Fu
ContributorsLiou Meng-Chi, Tzeng Shiann-Lang, Chern Sheng-Kuen
PublisherNSYSU
Source SetsNSYSU Electronic Thesis and Dissertation Archive
LanguageCholon
Detected LanguageEnglish
Typetext
Formatapplication/pdf
Sourcehttp://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0808102-151719
Rightsrestricted, Copyright information available at source archive

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