| China's economy has made great achieves since the thirty years of reform and opening up .Meanwhile, it has also made great development in social assistance ,and has gained significant results. But simultaneously, the construction of social assistance is not perfect and faces many problems. The content of social assistance has made structural change and met many new challenges. The development of social assistance has long way to go. Throughout the long history of the process, we can see as a systematic project, modern social assistance has suffered unprecedented impact of economics and economic policy .Throughing analyze economics and social assistance together ,we can better understand social assistance ,the process of social assistance can also be promoted .The concept of social assistance is dynamic , and its content has also changed with the development of the society.The starting point of this paper is the origin of economics .There are three theoretical origins in building up social assistance :1.It's necessary to build up social assistance because of the existence of social risk.2.The establishment of social assistance is based on the theory of the country .3.Social assistance is a social extension of altruistic. The main line of this paper is from micro to macro, makes a general analysis to the supply and demand of social assistance from micro-economics,obtains the optimal supply of social assistance, and proposes the short-sighted behavior of the government in the supply of social assistance and the binding of government supply This paper analyzes from two different angles of institutional economics and information economics .From the perspective of institutional economics ,making transaction costs as the core , the author analyzes market failure and government failure in social assistance ,and government failure includes two aspects :government politics failure and government management failure . From the perspective of information economics, the author analyzes the game between the local governments in the process of social assistance, the game between local government and central government ,the game between the objects of social assistance and the government ,as well as Matrix Game. Meanwhile ,the author compares the discrepancy of social assistance and determinants in the four conditions below : perfect information static ,perfect information dynamic ,incomplete information static and incomplete information dynamic ,and discovers the dilemma in the process of social assistance ,thereby put forwards the suggestions to resolve the problems .The growth off economy has close relationship with social assistance , through the analysis of the expense of social assistance and stable economic growth of correlation analysis between the two.Finally ,the author reaches a conclusion that contains six main recommendations to mature social assistance: 1.Eatablish a three-dimensional idea of social assistance;2.Speed up the legislation of social assistance3.Improve the management of social assistance;4.Perfect the supervised mechanism of social assistance;5.Mobilize social forces to participate social assistance ;6.Improve the operational efficiency of social assistance funds. |