An Analysis of Social Security Transfer Payment from the Perspective of Public Economics

Abstract

The social security system of transfer payments is not only an important measure to resolve the problem of the vertical and horizontal imbalances of social security finance among all levels of governments,but also an important component of the social security system and the financial transfer payment system.The theories of public goods and fiscal decentralization are the important theoretical fulcrum for the social security transfer payments system.The attribute of social security products should be analyzed concretely in view of the different items according to the characteristics of public goods.The Hierarchical theory of public goods is the foundation for the separation of the powers and responsibilities between governments as well as the premise for the implementation of the social security transfer payments system.The financial federalism theory has embodied the critical characteristics of decentralization,that is to say,in view of the efficiency and the governmental functions,to realize the matching of different levels between public goods and governments.Tiebout’s voting with feet hypothesis has brought forward the equality problem of the public goods supplies between different regions;only through the social security transfers payment system to adjust the welfare gap between different regions,can the central government ensure the roughly equal level of welfare between different regions,so as to avoid the adverse consequences of frequent population mobility.