An Economic-based Study on the Efficiency of Public Policy

Some researchers study the efficiency of public policy with a process-based approach. They analyze reasons for the low efficiency of public policy and make suggestions on its countermeasure. With an economic-based approach, this article points out that the ultimate goal of public policy is the optimal allocation of resources, and the efficiency of public policy will improve with the optimization process of allocation efficiency. It also argues that government's main duty is to provide public service and maximize public benefit. But it does not necessarily mean a complete exclusion of enterprise profits. That is to say, public policy is to make up, but not to deny, the market. An effective measure to improve the efficiency of public policy is to transform public benefit into the inner demand of each individual in the society.