Welfare Economics Analysis Of The Silver Industry In Sichuan Province

Since the founding of new China,the population of our country grows rapidly at the same time. And the aging population structure has also undergone rapid change. Our country has entered into the aging society since 1999. With the first peak aging population growth,our country will further accelerate the aging process in the next 25 years. In 2015, the elderly population of our country has been 212.42 million, almost 15% of the whole population.Sichuan has the largest elderly population in the west of our country and it’s still increasing.Since the sixth census of Sichuan Province, it has almost 13 million elderly people. 16% of the total population and 1% higher than the national level of aging. Sichuan has ranked the second on the elderly population. Along with the serious aging situation in Sichuan, silver industry has arisen fast as an emerging industry. In view of the growing aging problems, we must fully understand the necessity and urgency of developing the silver industry.In order to analysis the welfare economic development of the Silver Industry in Sichuan Province,this paper is mainly based on the welfare economics to explain,establish and develop the theoretical foundation of the Silver Industry. And this paper also analysis its present situation, problems and the Silver Industry allocation of resources utilization. Then put forward some proposals to promote the Silver Industry to achieve the maximum economic efficiency and social welfare in Sichuan Province. Social welfare,that is,people enjoy the economic benefits.Welfare is the essential mean to maintain social stability and economic development. Well social benefits and economic benefits are also the goal of the government macroeconomic regulation and control. The sound development of the silver industry will promote the elderly social welfare and then benefit the elderly more.Previously, many international and domestic scholars have researched on the definition of the Silver Industry,the development pattern of the Silver Industry,exploring the deep theory combining with practical situations and so on. On the basis of the welfare economics theory and the Cobb-Douglas production function theory, this paper analysis the Silver Industry development situation,problems and the cause of these situations. After explaining the supply of producers, the demand of the consumer, this paper establishes the Cobb-Douglas production function model in western economics to demonstrate the configuration of using the Silver Industry resources in Sichuan Province. And then put forward the corresponding optimization suggestions. Through the empirical analysis of the Silver Industry development present situation and its resources allocation In Sichuan Province, we find that the Silver Industry development in Sichuan Province is still scale increasing. The increasing return condition is shown in the elderly aspects such as food/health care products, elderlymedical/drug demand. At the same time,capital and technology progress will be prompted as an important factor of economic growth. And the government should be appropriate intervention in adjusting income distribution pattern of the elderly in Sichuan province,expanding production strength in science and technology innovation in the joint efforts of government and the enterprises to realize the Silver Industry the maximization of economic benefit and social welfare in Sichuan Province.