On The Optimization Of Financial Resource Allocation Of The Old Industrial Base In Jilin Province

The history of financial resource allocation can be traced to Goldsmith in 1969. In China, the first man among domestic economic scholars that mentioned financial resource allocation is Bai Qinxian in 1998. He stated that finance was also a kind of resource, and it also had the problems of reasonable exploitation and valid use. After that, there were a large number of scholars engaged in studying the theory of financial resource. They promoted the improvement and development of this theory and on the basis of this theory, they developed a new theory: the sustainable development theory of finance.In the second part, the paper gives a definition of financial resource allocation: Finance is a basic strategy kind of resource, and it can control the allocation and use of other resources. After analyzing the dual-nature of finance resources, the author analysis the issue of financial resources allocation and the allocation efficiency. The paper also highlights the importance of the optimization of financial resource allocation and the improvement of allocation efficiency.Pareto optimality is a central concept of new welfare economics, which can be used to judge whether resource allocation is on optimal state in a society. In the third part, the paper uses the theory of Pareto optimality in analyzing financial market. Under strict assumptions, the paper analyzes three conditions under which financial resource allocation can achieve Pareto optimality in a perfect competition market. The three conditions are: the condition under which the investors'financial portfolio can be the best, the condition under which...