In a market economy efficiency is regulated by market, as economic activity is driven by interests. To gain interest, every resource investor must group his production factors in light of supply and demand and prices, and raise his efficiency. Therefore, the mechanism behind efficiency in the market economy is none other than the interest mechanism, or market mechanism, and the investor’s goal is to maximize his interest. Thus, motivation for interest and the lure of goals are unified insofar as efficiency is concerned.

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1998: The Dual Foundations of Efficiency

  • Yining Li

摘要

In a market economy efficiency is regulated by market, as economic activity is driven by interests. To gain interest, every resource investor must group his production factors in light of supply and demand and prices, and raise his efficiency. Therefore, the mechanism behind efficiency in the market economy is none other than the interest mechanism, or market mechanism, and the investor’s goal is to maximize his interest. Thus, motivation for interest and the lure of goals are unified insofar as efficiency is concerned.