Resource Misallocation And Measurement Of Welfare Loss

In the case of constant total resource,the efficiency of resource allocation among departments is crucial to economic growth.In order to achieve its full employment,economic growth,price stability,balance of payments and other objectives,tax policy,credit policy,labor policy,exchange rate policy,industry regulation,regional policy and other administrative interventions were introduced.At the same time,the policy achieves certain goals in the short term,resulting in improper resource allocation,which reduces the long-term growth of the overall economy and brings a certain degree of welfare loss.This paper uses the data of all A-share listed companies from 2007 to 2016 to measure the welfare losses caused by factors misallocation in different industries,different ownership systems and different regions.It is found that there is a lack of the two factors allocation among the three industries,and the inflows of labor and capital will lead to an increase in welfare.What's more,the benefits of capital and labor inflows to the tertiary industry are more improved.The state-owned economy protected and supported by national policies has attracted excessive labor and capital factors,and have caused the lack of input of factors in the non-state-owned economy,appropriately liberalizing the government,and guiding the improvement of the overall welfare to the non-state-owned economy.Effective policies,such as the 12th Five-Year Plan,will alleviate the welfare losses caused by the misplacement of capital and labor resources to a certain extent,and the empirical results show that the policy has more relief to the welfare losses of state-owned enterprises..In the future,the government should continue to attach importance to the tertiary industry,formulate policy guidance,attract the flow of labor factors and capital elements to the tertiary industry.Optimize the lending environment.Increase the degree of marketization of the state-owned economy,vigorously develop the private economy,and alleviate the mistakes of input factors in different ownership economies.Continue to adhere to the strategy of the rise of Central China and the strategy of developing the western region,and guide the active inflow of the elements.The Northeast region has formulated more effective policies to curb the outflow of labor and guide the inflow of labor.The transformation and development of the eastern region still needs the support of a large number of input inputs.Effectively play the guiding role of the government's"visible hand",guide the factors to flow in the right direction,alleviate the misallocation of factor resources,and enhance the welfare in the economy.