The Relation Between Efficiency And Equity &.Its Practical Application In China

Efficiency and equity is the most important goal of human being all along. To make clear the connotation of efficiency and equity, especially the connotation of equity, is the prerequisite and key of recognizing and resolving the relation between efficiency and equity correctly.This dissertation firstly defines the connotation of equity from three angles-the adjudication criterion, the adjudicator and the object to be adjudicated. Then the author put forwards two criteria to judge whether the economic behavior is equitable-one is efficiency criterion, the other is the criterion which measures the equability of individual income. In this dissertation, the author demonstrated the relation between efficiency and the equity which meets the requisition of efficiency criterion as well as the relation between efficiency and the equity which meets the requisition of the second criterion. On the base of the demonstration above, the author offered the foundation to which we should accord when we choice between efficiency and equity. In the last part of the dissertation, the author argued and considered the inevitability of adhering the principle-"efficiency firstly and take count of equity simultaneously" in China today, then he analyzed the triumph and failure in the procedure of execution, in the end he proposed the institution and measures which should be improved.