Credit System For Basic Research

Credit is a kind of borrowing-lending activity. But in nature, credit is akind of property right, and a bargaining activity of the owner of propertyright to maximize her or his economic benefits. In the modern economiccondition, credits have already permeated all aspects of economy, andbecome a measurement of macroeconomic adjustments and controls forgovernment. This dissertation has studied the formation and maintain of thecredit from the point of view of the institutions.The first chapter introducethe origination of credit, development of credit and the function of thecredit, and analyze the relation of the credit and institutions. The subject ofthe credit bargaining are individuals with one's own thought. And the creditbargaining are carried on under certain system. So, the social ideology suchas custom, moral, practice etc as well as the law influences the developmentof credit. The institutions were originated from individual's game process inthe society; and once the institutions came into being, it will influence thedevelopment of credits. The second chapter study vicissitude of institutionsabout credit. Institutions function as stabilizing expectancy and simplifiedcognition. The institutions can be divided into the formal institutions andinformal institutions. Usually the distinction of the two institutions is notcertain. The formal institutions, such as law arid regulations are usuallyclose and relevant with the nations and governments, and are implementedby the government generally. Rules and regulations of the middleorganization belong to the formal institutions either, and are implementedby the middle organizations. The informal institutions such as custom,morals, and religions are implemented themselves. The two kinds ofinstitutions have one's own comparative advantages, emphasizing a kind ofinstitutions but neglecting another kind of institutions will cause confusionand chaos. In the course of vicissitudes , of the society, two kinds ofinstitutions must be evolved at the same time. Obviously personal credit andenterprise credit is different. The third chapter analysis the personal creditand enterprise credit. In personal credit, the benefit and loss of personal action is undertaken by the individual. While due to the separation of the ownership and management, there are principal-agency relationships in enterprise credit. So, there must be the corresponding institutions in enterprise credit. The last chapter indicate that Historic condition and realistic environment of the our country must be in consideration in the course of developing institutions of credit...