Institution Change Towards Household Contract Responsibility System

Household Contract Responsibility System was finally established after a series of reforms since china come into existence. The way Household Contract Responsibility System was established is different from other institutional changes, It was a compulsory transition which was started by the peasant. Also 30 years'practice proof that it was a efficacious institution which was consonant with our country's current condition.The article will give a detailed analyst about the producing and establish of Household Contract Responsibility System by the theory from New Institutional Economics. Because we should interpret how the former institution came out first before we discuss the reform of rural land institution, not just find out the defect then try to correct it. The article will analyze the problem that rural land institution changed into Household Contract Responsibility System from two levels:The first one is why our country's rural land institution had to change at the end of 70's.It will be discussed through demand and supply of Institutional Changes theory. The second chapter of the article respective expatiates on the producing of Institutional Changes demand, the deficiency of Institutional Changes of Supply and the non-equilibrium of Institutional Changes about our country's land institution at the end of People Unit. The third chapter is about the producing process of Household Contract Responsibility System. It will analyze the behaviors of the entire main subject and their income and cost from the Institutional Changes.The second is why the rural land institution change focused on the form of Household Contract Responsibility System. The article will use the Path dependence theory to explain this question. It will be interpreted from two sides: formal institution and informal institution. A long deep path which was formed due to the evolution of the former land institutions will play a part in the later formation of the land institution.