Author(s): Wang Weilong
Pages: 13-17
Year: 2014 Issue:  6
Journal: Journal of Xiangnan University
Keyword:  Stiglitz; transition; market socialism; market; government;
Abstract: Stiglitz seize keenly the “theoretical basis of market socialism” called “Lange - Lerner -Taylorˊs theorem” which “associated with the fundamental theorem of welfare economics”, and thus made the neoclassical model and market socialism closely linked. Stiglitz had dubbed the neo-classical model and market socialism as“twin brother”. For above, the market transformation of socialism in the theoretical dis-cussion Steinmann plays a very important role: that is, market socialism is a link which joins neoclassical model and the market economy--firstly, criticizing socialism and neo-classical model to seek lessons by comparing to countries in transition, and then providing guidance and policy recommendations for transiting countries. Further, Stiglitz use its information economics paradigm, which is a powerful theory analysis tool to tap the market economy mechanism in-depth insight and systematically, and then to compare and analyze with the reality of market economic practices. Finally, he forms a unique transitional economic theory. Stiglitzˊs transitional theory has significant theoretical and secular valuesfor Chinese transition.