Abstract:Based on the profit maximization theory and public goods theory, this paper attempts to build a rural pension service supply function model which includes both construction subsidies and operation subsidies in developed and underdeveloped areas, and systematically analyzes the relationship between government financial subsidies and rural pension service supply; secondly, by establishing a panel simultaneous equation model, this paper further investigates the relationship between government construction subsidies and operation subsidies It is found that construction subsidies have a direct impact on the supply of local rural old-age services; operation subsidies can inhibit the positive impact of some construction subsidies on the supply of local rural old-age services, and the total positive effect of operation subsidies on the supply of rural old-age services in underdeveloped areas is relatively large. Therefore, in the development of rural pension service supply, the government should not only increase the construction subsidies and operation subsidies for rural pension institutions, but also consider the channels of government construction subsidies and operation subsidies for rural pension service supply, so as to better develop rural pension service supply.

Key words:financial subsidies,rural pension service supply,constructive subsidy,operating subsidies