Evolution and Rationality in the Transition of Economic Systems

Author: Jin Tao
Publisher:
Publish Date: 2005-07-01
Features: Two major events occurred in the 20th century. One was in the first half of the century when many countries moved from underdeveloped market systems and semi-feudal systems to socialist planned economies. The second was at the end of the century when these socialist planned economies gradually shifted back to market systems. This book constructs a general framework for the transformation process based on the institutional supply-demand analysis and institutional equilibrium analysis of mainstream economics. Additionally, considering the effectiveness of evolutionary game theory in transformation studies, it builds a dual-level interactive (evolutionary) game transformation model to demonstrate the coexistence of evolution and rationality in the transformation process. The model assumes that macro-level conflicts (between the central government and local governments) and micro-level conflicts (between micro entities and local governments) drive the model into an interactive dynamic framework. This book constructs a general framework for the transformation of economic systems based on the institutional supply-demand analysis and institutional equilibrium analysis of mainstream economics. Additionally, considering the effectiveness of evolutionary game theory in transformation studies, it builds a dual-level interactive (evolutionary) game transformation model to demonstrate the coexistence of evolution and rationality in the transformation process. A distinctive feature of this work is its appropriate connection and comparative analysis between the study of China's transformation from a planned economy to a market economy and the later transformation from a semi-feudal, semi-colonial market economy to a socialist planned economy in the second half of the 20th century. This not only provides a deeper and clearer insight into the nature and essence of transformation but also enables readers to understand the reasons behind China's two major reverse transformations by examining the evolution of the socio-economic system itself. Therefore, linking and comparatively studying China's two major transformations is meaningful both historically and in reality.