Abstract:The multitask principleagent models are presented to study the incentive mechanism between local government and universities.In this model,two main tasks of universities,namely,teaching and research are considered.Mechanisms under three kinds of relationships between the two tasks,namely,independent,substitutable and complementary,are discussed,respectively.The main conclusions are as follows.If the two tasks are complementary,incentives on research can improve teaching level.On the other hand,if the two tasks are substitutable,incentives on research will induce the university to ignore teaching and attach too much attention on research.As a result,the incentive performance will be weakened.To overcome this problem,subjective evaluation and supervision mechanisms are introduced to converting the substitutable relationship to a complementary one.In addition,it indicates that by redesigning incentive mechanisms,the incentive efficiency can be enhanced effectively.