Education Policy Based On Economic Analysis

Education individual meets with a forever question that bounded available resources can't satisfy infinitude demands. Bounded available resource, including limited behavioral ability which Barnard put forward, bounded rationality which Simon put forward, bounded available material resource, is applicable in special domain. Education individual's demand includes the demand of educational service and non-educational commodity. Under the constraint of bounded available resources, education individual not only needs a bounded available resources collocating optimization, but also needs to economize available resources as do as he can.Although education individual has infinitude demands, he has limited demand named available demand which can be satisfied by the bounded available resource. Available demand is equal to be satisfied. For sake of gaining the most utility, education individual will allocates bounded available resource to available demands according to the principle that marginal utility is equal. Parents allocate their bounded available resource to educational service and non-educational commodity according to the principle that marginal utility is equal. Teacher allocates his bounded available resource to teaching work and non-teaching work according to the principle that marginal utility is equal. Education policy maker allocates his bounded available resource to the actions of primary income, anticipated ministration income and rent-seeking income according to the principle which marginal utility is equal. In short, the criteria to which education individual allocates bounded available resources according, is the utility, not social interest that educational service, teaching work and education policy-making can bring.Education individual's available resource is not only bounded, but also applicable in special domain. So, education individual will try his test to use his available resource in special domain in which the available resource only can be used and will do some collaborate exchange and marketable exchange to promote the usable efficiency of available resource, to boost up the ability of gaining the most utility. However, collaborate transaction and market transaction take transaction costs. The function of education organization is economizing transaction costs. Anyone can share the profit of economizing transaction costs when he is charged or not Education individual will economize available resource if he pursue for the biggest utility. So, we can know about the opportunism behavior which be used to escape the functional costs of education organization. We can apply the choice incentive to allure the functional cost of education organization from education individual. We can apply compulsion to levy upon the functional cost of education organization from education individual. Additional, for sake of economizing the transaction cost, the endogenous transaction costs from harmonizing transaction by education organization should not be bigger than the exogendous transaction costs that education organization economize. It decides the extend of specializing of organization work and the scale of educational organization.Education institution is a wide-used concept, including endogenous institution and exogendous education institution. The goal of education institution is to economize on education trade cost of individuals. It doesn't emphasize on the coordination of trade action but on regulation of the trade action of education individuals. Education individual can choose to abide by the institution or bring forth new ideas on institution according to individual's cost and benefits. The potential benefits which come from new education institution is the essential motive force to propel the change of institution forward. These potential benefits come from three aspects: change of relative cost of essential factors of production in education process; change of laws and regulations; change of teaching and management and technology. If the potential cost of most of the individuals broug...