Abstract: During the transitional period from central planning to market economy, from people’s?communes to rural autonomy, from small-peasant economy to urbanization, how can the provision of the village-level public goods approximate the Pareto optimal? The reality shows that the pure government-leading pattern of supple can not meet the effective supply of present village-level public goods, nor solve the problems of short supply of village-level public goods and the imbalanced structure of supply and demand. Based on the current conditions of the development of the village collective economy, this study believes that it should be a practicable way to introduce the power of the village collective economic organizations and to innovate and realize the supply pattern of village-level public goods with the combination of government-leading and government-inducing. In addition, through the relative and matching financial input and supporting policies, it is possible to realize the virtuous circle of the development of the village collective economy and the government-inducing pattern of village-level public goods supply.

Key words: village-level public goods; efficiency of supply; mechanism innovation