The Core Function of the Institution and Its Realization

• 作 者: YuanQingming;DingFen;
• 机 构: Jiangxi University of Finance and Economics,Nanchang,330013
• 出 处: 2010年财政管理创新与经济可持续发展国际会议
• 发表日期: 2010年期

　　Institution functions are diverse and of different levels.The level of institution functions refers to that the institution functions are divided into core function and subordinate functions, and the core function is realized through the subordinate ones.The core function of the institution is providing both incentives and constraints for the subject (i.e.economic people) in economic activities, and this core function is realized through the subordinate functions of reducing transaction costs, internalization of externalities etc, and the reason why the functions of reducing transaction costs, internalization of externalities, etc could provide incentives and constraints for economic people is that they can influence the benefits and costs of the economic activities undertaken by economic people.