Analysis Of The Economics Of Charity

Charity Undertakings~1, as an important component of the social security system, has played an increasingly important role in raising resources and providing material assistance. Charity is not only to provide material assistance, but also help upgrade the moral standards of our society, and promote the comprehensive development of society. To develop the Charity Undertakings vigorously, we must understand the basis for the development of Charity to follow it.Based on the theory of the third sector, we use economic analysis to Charities and Charity organizations. The depth study of charitable causes, conditions and development, explained the inherent inevitability and necessity. Charities can actually be regarded as a kind of "economic activities", but charitable resources is a scarce resource. How effective use of scarce resources to meet the people's maximization demand is the main objective of the study. With the help of Cost-benefit Analysis and game theory, the article pointes out that Demand and Supply are the two sides of Charity. To promote its development, a precise understanding of the conditions of the Demand and Supply sides, especially their subjects, levels and patterns is required.This article also suggests that the government should not get involved in the Charity Supply and Demand, avoiding being a direct supplier of Charity. It should use its authority to create an institutional arrangement to ensure the performance of Charity contract, and to restrict and guide the Charity externalities. According to the domestic situation, we must improve the relevant laws and regulations to regulate the life of a negative externality of the many charitable and similar acts, and enhance the positive externalities and non-externality behaviors. It is urgent to establish a more comprehensive and effective norm to maintain and enhance the cooperative order. The study results contribute to the development of Charity is an important theoretical and practical significance. This will be beneficial to the cause of promoting greaterdevelopment and improving the social security system.