On Non-Profit Privately-Run Higher Education Institutions Receiving Public Finance Subsidy: From the Perspective of Pareto Improvement Theory

Abstract

The subsidy provided by government public finance to non-profit higher educational institutions is a process of public resources for reallocation, and the concrete application of the Pareto improvement theory in the practice of government public finance resources allocation. The Pareto improvement theory is of importance guidance significance to the scientific and rational adjustment and allocation of resources. As to the allocation of public finance in higher educational institutions, the Pareto improvement theory means that the public finance resources obtained by state-run higher educational institutions is not reduced, and non-profit privately-run higher educational institutions also obtain certain public finance subsidy, which promotes the rational allocation of public finance resources. The realization of Pareto improvement of public finance resources in higher educational institutions is favorable. That non-profit privately-run higher educational institutions obtain government public finance subsidy contributes to rational allocation of public resources, and improves the circumstances of all sides, which are a multi-win arrangement.