Study Of The Criteria For Allocation Of Social Income

Professor Sen's research shows that economic development does not necessarily mean the elimination of poverty and even famine. In fact, accompanied with rapid economic development in recent years, not only the accumulated wealth, but also the cumulative poverty. To China as an example, the Chinese Academy of Social Sciences published in 2007, that is, social blue book pointed out that the income gap in China are developing in depth, "the income gap is too large, rich and poor divide" has become the most prominent social problems. To solve this problem, the fundamental way is to reconstruct the income distribution system of society, which will depend not only on the further development of socio-economic, but also an appropriate criteria of income distribution.Construction of social income distribution need to investigate efficiency through economics reserch, and need to explore the basic rules and the ultimate demands of society through the ethics discussion. In this regard, Professor Sen pointed out that the ethical reserch will help to make economics more Interpretative, and Professor Ng. further pointed out that the welfare economics is incomplete as it analyzes preference without going on to analyze welfare (or happiness) which is the ultimate objective. Therefore, we want to attempt to explore a more complete criteria of social income distribution, which could match the current economics development, from the discussion of ethical basis and the welfare economics research.In the former of this article, we first attempt to give some discussion to the ethical basis which could support a criteria of social income distribution, and discuss the corresponding ethical framework progressively. After a simple study through the main theories about income distribution, we have reached a preliminary conclusion group of the income distribution and a number of relevant conclusions.In the latter of this article, we try to continue this discussion in depth to the scope of welfare economics. First of all, we do some research on the basic elements of a criteria of social income distribution, such as: total income of society, distribution, utility (welfare and preferences), social wealth. Next, with the starting point of the indifference curve and the marginal utility analysis, we finally come to a conlusion through the latter discussion of Pareto optimality on the efficiency of the income distribution. Through the last economics conclusion, we can find that it can not only be a good match with the ethical discussion but also make the ethical framework further enhanced.