Education Demand And Supply: From Market Equilibrium To Social Equilibrium

The harmony development of education is one of the goals for all countries in the world. We can't depend only on market or government to reach the goal. The harmony development of education and social goal can be realized only when education demand and supply reach social equilibrium. It is the key to realize the harmony development of education that education demand and supply reach social equilibrium from market equilibrium. This paper analyzes the question with theories and methods of education economics and related disciplines. It is divided into six parts.The first part gives the definition of education demand and supply and poses the common questions existed during the procedure in reaching equilibrium of education demand and supply.The second part analyzes the product attributes of education and expounds some related concepts.The third part to the fifth part systematically analyzes the operating mechanism of education market. Through the analysis, we find that market is indeed the valid method to realize the rational use of education resource, but market has defects. Though education demand and supply reach market equilibrium, it still has some questions, for example, education service is unfairly distributed and the valid supply of education isn't adequate. Market can't ensure the political direction and strategy emphasis of education, can't ensure education developing steadily for long time, while government can make up the defects. Therefore, government must regulate education, lead education demand and supply reaching social equilibrium from market equilibrium.The sixth part analyzes government's economic functions and poses some advice to realize social equilibrium of education demand and supply.