Research And Innovation Of "Adaptive Efficiency" Theory

The basal viewpoint of systematical change theory is that system is the determinant of economic growth. Then , a logically inevitable result is that the theory describing the systematic characteristic that leads to the long-term growth trend is an important part or even the core of the systematical theory .That western institutional economists live in a relatively good systematical environment, and that large scale systematical change of the reforming countries make people fix their eyes on the process of change itself .So it enables the sparking thoughts of systematical change theory including the property right theory , the national theory ,the state theory ,the ideology theory, the cause and process of systematical change theory, to be widely developed ,but it is short of the discussion on a system of dynamic efficiency standard. Under such a theoretical background , the"adaptive efficiency"theory is created by North, aimed at describing the characteristic of system structure that brings long term growth. It opens up a new , exciting frontier. Just as it is newly created ,there is still much space for us to do further explore and research. Then the central content of this article is to comment in all round way and do further research on North`s"adaptive efficiency"theory.The Introduction mainly tells the studying current situation about the systematic efficiency standard and"adaptive efficiency"theory .It points out , all along ,the systematical change theory result in the serious lack of the description of the systematic characteristic of the long term economic growth .The"adaptive efficiency"theory ,raised by North is the first in systematical change theory that is especially used to comment on the efficiency of the system in the long run. So it has a pioneering meaning ! North`s theory did not draw the western economist`s enough attention ,perhaps because they were in a pretty perfect systematical environment ,on the other hand ,in China ,some sensitive scholars has started to analyze the practical problems of our systematical change with the theory. But an organization of the theory is short of, let alone a specific complete explore on the"adaptive efficiency"theory from the point of long term systematical efficiency. In that case ,the research is more or less limited to a certain question, some simply focus on the partial characteristic of the"adaptive efficiency"theory, and some others make use of the theory in a definitely different meaning .Therefore ,it is of great necessity to do further study on"adaptive efficiency"theory of North.Chapter ONE organized North`s"adaptive efficiency"theory .On one hand ,it points out his core viewpoint ,on the other hand ,it indicates that there is capability for the theory to develop.Firstly, the research achievement of North is embodied in the full explanation of the"adaptive efficiency"theory ,it marks the establishment of"adaptive efficiency"theory of North, and his core point of view is:1. Definition of"adaptive efficiency"theory: A society , takes on the trend of long term growth on account of its system with the ability to adapt to uncertainty. 2. The mechanism that"adaptive efficiency"theory can lead to long term growth trend is proved by the three core element"uncertainty, limited rationality and the adaption". it believes that uncertainty is the nature of human society, and limited rationality makes it extremely difficult to solve the problem. This leads to the basic situation :In a world of uncertainty, no one knows the correct answers to the questions in front of them. The structure of system with the"adaptive efficiency"theory characteristic reveals the optional approach to solve the problem via encouraging"trial and error", and promoting decentralized decision process, so as to reduce the interfere with the uncertainty on the growth.What is more, North gives a deep interpretation of this mechanism .On the basis of the cognitive science, North widens the path dependence theory , through referring cognitive science theoretical achievements .He points out that path dependence starts from the awareness levels ,The system level in the middle , and finally leads to the economic level. Cognitive and system path dependence will lead to the economic path dependence. As a result, the deep-seated meaning of the"adaptive efficiency" mechanisms is that, the evolution belief system creates a good structure of the system, so that, individual mental models(mental model refers to the expectation or forecast made by the mind prior to the feedback on the environment) will have flexibility. In face of new problems, new mental models will be established and the motive to solve the problems will be tried, then we will be able to deal with personal or social experience, and also able to solve a new dilemma.Secondly, I think the core point of North needs further exploration.The ultimate question North wants to solve is :what kind of structure of the system is efficient .That is the trend which will bring in the long term growth! Through the demonstration surrounding the three core element"uncertainty, limited nationality and the adaption".The conclusion is drawn: an efficient system is encouraging"trial and error"and promoting decentralization of decision-making. Here is a problem :whether the results of"trial and error"is bound to the long term growth trend .I think the decision-making is performed in a certain period of time ,and a certain environment even if the trail and error reveals the optimal decision to deal with the current uncertainty. It is due to then specific circumstances of the selection system and it is not necessary cause and effect relationship with the long term trend growth .So as to the research on the relationship between the system and the long term growth trend ,it does not reveal the nature of the solution to owe the solution of the problem to"trial and error", So North `s theory requires deep discussion and additional remarks.This article believes that"trial and error"is only skin and bone, and there is still a fundamental factor in general between"trial and error"and long term growth trend. Only by clarifying this factor can a logical relationship among the system ,uncertainty and long term growth be established ,so that the mechanism that the systematical structure of"adaptive efficiency"theory brings about long term trend will be truly explained .Chapter Two and Chapter Three seeks the fundamental factor between"trial and error"and long term growth and it gives a deep supplement to North`s"adaptive efficiency"theory. The research goal is achieved by solving the two theoretical problems .Question 1.what is the determinant of long term growth trend ,and of the change of long term growth trend?First of all, the determinant of long term growth trend is knowledge. The long term growth trend appears ,because the knowledge maintains sufficiency, correction , coordinate use and updates.Then, the change of the long term growth trend is the result of the structure of heterogeneous effects on heterogeneous mode of action.This article defines the heterogeneous knowledge structure as a three-in-one individual knowledge structure which is consisted of explicit knowledge ,tacit knowledge and personal gift-related knowledge that is formed by knowledge .This is the existence under the division of labor. Heterogeneous mode is action is defined as individual mode of action, which is based on multiple goal, conducted by changing bounded rationality .Heterogeneous knowledge structure has a determining influence on the growth by taking advantage of the intermediary factor—heterogeneous mode of action .Heterogeneous knowledge structure keeps on developing with the development of division of work: Heterogeneous code of action varies as the individual keeps on studying .The result of the former acting on the latter is :the usage of stock of social knowledge is unpredictable, in addition, the gaining process of the increment of the social knowledge is also unpredictable, thus resulting in the variation and uncertainty of the long term growth trend.Question 2.How to perform"trial and error"so that we can get a long term growth trend ?Knowledge is the determinant of long term growth trend. The result heterogeneous knowledge structure acting on the heterogeneous mode of action lead to changes of long term growth. Then, systematic structure with efficiency should be encouraged with the"trial and error"method .It should generates in the economic system and remains creative atmosphere. so that it can endow the heterogeneous individual action with full, complete knowledge, coordinate use and updating direction. Then a long term growth trend will be got. Up to now, it is clear that the basic factor between"trial and error"and long term growth trend is"knowledge".System, uncertainty"trial and error", knowledge , individual action long term growth trend will be united by introducing this factor, besides, the relationship between system structure with"adaptive efficiency"and long term growth trend should be created. In the long term, uncertainty is the essence of human society .Dealing with uncertainty, systematical structure should be encouraged to perform"trial and error",promote decentralization first of all. Above all, system ensures knowledge is full , correct ,coordinate used and updated by engaging and conducting the individual action. So that our society will take on a long term growth trend, in the process of dealing with the uncertainty.As a result,"adaptive efficiency"theory of North can be revised: a society ,takes on a long term growth trend ,because its system structure promotes the knowledge to be full ,correct ,coordinate used and updated, by conducting the individual mode of action, dealing with the uncertainty.Chapter Four and Chapter Five is the expansive research of the"adaptive efficiency"theory. This focuses on two aspects of work: one is to explore the formation mechanism of"adaptive efficiency"theory. The other is to analyze the efficiency level of the adaptability of the current structure, and the conclusion is : Firstly,"adaptive efficiency"is formed in the interaction process of the formal and informal system . The efficiency of a country`s system fundamentally depends on the informal system which is formed after a long term development and evolution .However, path dependent is not unbeatable, The right formal system can influence the informal one effectively, thus influencing the growth path, or switching the direction of the path dependence ,then an ineffective system will turn effective, or the formation of"adaptive efficiency"will be much faster.Secondly , China has basically established a socialistic marketing economic system. and achieved a sustained GDP growth, but in fact, there is still a long way for us to go before our present system structure has the"adaptive efficiency"and forms the systematical environment that can accelerate microscopic main body, and make correct use of the knowledge .To achieve the goal, the systematical construction is a hard task..In short ,I think ,there is a significant point in exploring system of dynamic efficiency standards . The"adaptive efficiency"theory of North s a pretty useful breakthrough, This article want to conduct deep digestion and extending analysis, based on North`s research. Of course, this attempt is simple and shallow, and it needs further exploration and improvement.