The Incentive-constraint Cognitive Framework, Basic Thought, Principles and Recommendations for the Optimization of Income Distribution

Jia Kang; Cheng Yu; Yu Changge

doi:doi:10.11648/j.jbed.20190403.16

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The Incentive-constraint Cognitive Framework, Basic Thought, Principles and Recommendations for the Optimization of Income Distribution

Jia Kang, Cheng Yu, Yu Changge

Published in Journal of Business and Economic Development (Volume 4, Issue 3)

Received: 15 August 2019 Accepted: 17 September 2019 Published: 2 October 2019

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Abstract

Income distribution is a major and complex issue that directly affects the vital interests of hundreds of millions of people. To deepen the reform of the income distribution system, it is necessary to clarify the accurate connotation of the relationship between “fairness and efficiency” under the framework of “incentive-constraint”, make a correct analysis on the causes of income differences, and lay a foundation for understanding the rationality of the policy. The basic idea of optimizing income distribution in China should be to use the vision of common prosperity as the “goal-orientation” and combine the “problem-orientation” to accelerate the strategic transformation from “getting rich first” to “getting rich together”. The basic principles to be followed are the following: encourages entrepreneurial innovation with reasonable income distribution; recognizes the contribution of each factor and combines the distribution according to work with the distribution according to other factors; and appropriately allows and tolerates the expansion of the income gap in the first half of the “inverted U curve”, that is, actively adjusts and holds “polarization”; builds a system-engineered distribution system with promoting transparency, encouraging enthusiasm, promoting harmony and helping the weak as essentials; promotes the dynamic optimization of the distribution system and policy system with reform, namely effective institutional supply as the leader. On this basis, establish a system of initial distribution of national income with sound rules and fair process; establish a system of national income redistribution with appropriately equalized results; improve the third distribution system of national income; and promotes the reform of the supporting system for national income distribution.

Published in	Journal of Business and Economic Development (Volume 4, Issue 3)
DOI	10.11648/j.jbed.20190403.16
Page(s)	113-127
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2019. Published by Science Publishing Group

Keywords

Income Distribution, Incentive-constraint, Common Prosperity, Prior Prosperity and Common Prosperity

References

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[2]	Lu Bingyang, Guo Qingwang, Calculation on China’s Functional Income Distribution and Redistribution, Economic Research Journal, No. 10, 2012.
[3]	Qian Xianhang, Cao Tingqiu, Cao Chunfang, Suffering from Both Poverty and Instability: Research on the Establishment and Income Allocation in Public Sector, Economic Research Journal, No. 7, 2015.
[4]	Hong Yinxing, The Theoretical Analysis of Non-labor Factors Participating in Income Distribution, Economist, No. 4, 2015.
[5]	Chen Chibo, Li Chenghao, Research on Income Inequality, Redistribution Preference and Residents' Subjective Well-being. Publuic Finance Research. No. 12, 2016.
[6]	Jia Kang, Income Distribution Policy Optimization & Institutional Reform, Economic Science Press, 2012.
[7]	Selected Works of Deng Xiaoping (Volume III), People’s Publishing House, 1994 Edition.
[8]	The Party Literature Research Office of the Central Committee of the Communist Party of China, Selections of Important Literature in Thirty Years Since the Reform and Opening Up (Part I), The Central Party Literature Press, 2008 Edition, pp 356-660.
[9]	Dong Liming, Man Qinglong, Research on the Effect of Local Fiscal Expenditure on the Income Gap between Urban and Rural Areas. Publuic Finance Research. No. 8, 2017.
[10]	Li Shi, Luo Chuliang, How Unequal Is China? An Attempt to Correct the Structural Deviation, Economic Research Journal, No. 4, 2011.
[11]	James M. Buchanan, Liberty, Market and State: Political Economy in the 1980s, Beijing School of Economics Press, 1988 Edition, pp 141-150.
[12]	Thomas Piketty, Capital in the Twenty-First Century, CITIC Press Group, 2014 Edition.
[13]	Wang Xiaolu, The Status Quo, Problems and Countermeasures of National Income Distribution in China, Journal of China National School of Administration, No. 6, 2010.
[14]	Li Shi, Wan Haiyuan, Labor Market Cultivation and Middle Income Trap - Comment on China Labor Market Development Report 2011-2013, Economic Research Journal, No. 4, 2014.
[15]	Shao Hongwei, Jin Tao, The Kuznets’ Inverted-U Curve of Income Distribution - A Cross-Sectional and Panel Data Re-Verification, China Industrial Economics, No. 4, 2016.
[16]	Li Daoqui, Liu Linlin, Wang Hongling, The U-Shaped Law of the Evolution of Labor Share in GDP, Economic Research Journal, No. 1, 2009.
[17]	Chen Binkai, Cao Wenju, From Opportunity Equity to Income Equality: Income Distribution Dynamics in China, Comparative Economic & Social Systems, No. 6, 2013.

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APA Style

Jia Kang, Cheng Yu, Yu Changge. (2019). The Incentive-constraint Cognitive Framework, Basic Thought, Principles and Recommendations for the Optimization of Income Distribution. Journal of Business and Economic Development, 4(3), 113-127. https://doi.org/10.11648/j.jbed.20190403.16

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ACS Style

Jia Kang; Cheng Yu; Yu Changge. The Incentive-constraint Cognitive Framework, Basic Thought, Principles and Recommendations for the Optimization of Income Distribution. J. Bus. Econ. Dev. 2019, 4(3), 113-127. doi: 10.11648/j.jbed.20190403.16

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AMA Style

Jia Kang, Cheng Yu, Yu Changge. The Incentive-constraint Cognitive Framework, Basic Thought, Principles and Recommendations for the Optimization of Income Distribution. J Bus Econ Dev. 2019;4(3):113-127. doi: 10.11648/j.jbed.20190403.16

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@article{10.11648/j.jbed.20190403.16,
  author = {Jia Kang and Cheng Yu and Yu Changge},
  title = {The Incentive-constraint Cognitive Framework, Basic Thought, Principles and Recommendations for the Optimization of Income Distribution},
  journal = {Journal of Business and Economic Development},
  volume = {4},
  number = {3},
  pages = {113-127},
  doi = {10.11648/j.jbed.20190403.16},
  url = {https://doi.org/10.11648/j.jbed.20190403.16},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jbed.20190403.16},
  abstract = {Income distribution is a major and complex issue that directly affects the vital interests of hundreds of millions of people. To deepen the reform of the income distribution system, it is necessary to clarify the accurate connotation of the relationship between “fairness and efficiency” under the framework of “incentive-constraint”, make a correct analysis on the causes of income differences, and lay a foundation for understanding the rationality of the policy. The basic idea of optimizing income distribution in China should be to use the vision of common prosperity as the “goal-orientation” and combine the “problem-orientation” to accelerate the strategic transformation from “getting rich first” to “getting rich together”. The basic principles to be followed are the following: encourages entrepreneurial innovation with reasonable income distribution; recognizes the contribution of each factor and combines the distribution according to work with the distribution according to other factors; and appropriately allows and tolerates the expansion of the income gap in the first half of the “inverted U curve”, that is, actively adjusts and holds “polarization”; builds a system-engineered distribution system with promoting transparency, encouraging enthusiasm, promoting harmony and helping the weak as essentials; promotes the dynamic optimization of the distribution system and policy system with reform, namely effective institutional supply as the leader. On this basis, establish a system of initial distribution of national income with sound rules and fair process; establish a system of national income redistribution with appropriately equalized results; improve the third distribution system of national income; and promotes the reform of the supporting system for national income distribution.},
 year = {2019}
}

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TY  - JOUR
T1  - The Incentive-constraint Cognitive Framework, Basic Thought, Principles and Recommendations for the Optimization of Income Distribution
AU  - Jia Kang
AU  - Cheng Yu
AU  - Yu Changge
Y1  - 2019/10/02
PY  - 2019
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DO  - 10.11648/j.jbed.20190403.16
T2  - Journal of Business and Economic Development
JF  - Journal of Business and Economic Development
JO  - Journal of Business and Economic Development
SP  - 113
EP  - 127
PB  - Science Publishing Group
SN  - 2637-3874
UR  - https://doi.org/10.11648/j.jbed.20190403.16
AB  - Income distribution is a major and complex issue that directly affects the vital interests of hundreds of millions of people. To deepen the reform of the income distribution system, it is necessary to clarify the accurate connotation of the relationship between “fairness and efficiency” under the framework of “incentive-constraint”, make a correct analysis on the causes of income differences, and lay a foundation for understanding the rationality of the policy. The basic idea of optimizing income distribution in China should be to use the vision of common prosperity as the “goal-orientation” and combine the “problem-orientation” to accelerate the strategic transformation from “getting rich first” to “getting rich together”. The basic principles to be followed are the following: encourages entrepreneurial innovation with reasonable income distribution; recognizes the contribution of each factor and combines the distribution according to work with the distribution according to other factors; and appropriately allows and tolerates the expansion of the income gap in the first half of the “inverted U curve”, that is, actively adjusts and holds “polarization”; builds a system-engineered distribution system with promoting transparency, encouraging enthusiasm, promoting harmony and helping the weak as essentials; promotes the dynamic optimization of the distribution system and policy system with reform, namely effective institutional supply as the leader. On this basis, establish a system of initial distribution of national income with sound rules and fair process; establish a system of national income redistribution with appropriately equalized results; improve the third distribution system of national income; and promotes the reform of the supporting system for national income distribution.
VL  - 4
IS  - 3
ER  -

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Author Information

Jia Kang

China Academy of New Supply-side Economics, Chinese Academy of Fiscal Sciences, Beijing, The People’s Republic of China
Cheng Yu

Chinese Academy of Fiscal Sciences, Beijing, The People’s Republic of China
Yu Changge

Chinese Academy of Fiscal Sciences, Beijing, The People’s Republic of China

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APA Style

Jia Kang, Cheng Yu, Yu Changge. (2019). The Incentive-constraint Cognitive Framework, Basic Thought, Principles and Recommendations for the Optimization of Income Distribution. Journal of Business and Economic Development, 4(3), 113-127. https://doi.org/10.11648/j.jbed.20190403.16

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ACS Style

Jia Kang; Cheng Yu; Yu Changge. The Incentive-constraint Cognitive Framework, Basic Thought, Principles and Recommendations for the Optimization of Income Distribution. J. Bus. Econ. Dev. 2019, 4(3), 113-127. doi: 10.11648/j.jbed.20190403.16

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AMA Style

Jia Kang, Cheng Yu, Yu Changge. The Incentive-constraint Cognitive Framework, Basic Thought, Principles and Recommendations for the Optimization of Income Distribution. J Bus Econ Dev. 2019;4(3):113-127. doi: 10.11648/j.jbed.20190403.16

Copy | Download

@article{10.11648/j.jbed.20190403.16,
  author = {Jia Kang and Cheng Yu and Yu Changge},
  title = {The Incentive-constraint Cognitive Framework, Basic Thought, Principles and Recommendations for the Optimization of Income Distribution},
  journal = {Journal of Business and Economic Development},
  volume = {4},
  number = {3},
  pages = {113-127},
  doi = {10.11648/j.jbed.20190403.16},
  url = {https://doi.org/10.11648/j.jbed.20190403.16},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jbed.20190403.16},
  abstract = {Income distribution is a major and complex issue that directly affects the vital interests of hundreds of millions of people. To deepen the reform of the income distribution system, it is necessary to clarify the accurate connotation of the relationship between “fairness and efficiency” under the framework of “incentive-constraint”, make a correct analysis on the causes of income differences, and lay a foundation for understanding the rationality of the policy. The basic idea of optimizing income distribution in China should be to use the vision of common prosperity as the “goal-orientation” and combine the “problem-orientation” to accelerate the strategic transformation from “getting rich first” to “getting rich together”. The basic principles to be followed are the following: encourages entrepreneurial innovation with reasonable income distribution; recognizes the contribution of each factor and combines the distribution according to work with the distribution according to other factors; and appropriately allows and tolerates the expansion of the income gap in the first half of the “inverted U curve”, that is, actively adjusts and holds “polarization”; builds a system-engineered distribution system with promoting transparency, encouraging enthusiasm, promoting harmony and helping the weak as essentials; promotes the dynamic optimization of the distribution system and policy system with reform, namely effective institutional supply as the leader. On this basis, establish a system of initial distribution of national income with sound rules and fair process; establish a system of national income redistribution with appropriately equalized results; improve the third distribution system of national income; and promotes the reform of the supporting system for national income distribution.},
 year = {2019}
}

Copy | Download

TY  - JOUR
T1  - The Incentive-constraint Cognitive Framework, Basic Thought, Principles and Recommendations for the Optimization of Income Distribution
AU  - Jia Kang
AU  - Cheng Yu
AU  - Yu Changge
Y1  - 2019/10/02
PY  - 2019
N1  - https://doi.org/10.11648/j.jbed.20190403.16
DO  - 10.11648/j.jbed.20190403.16
T2  - Journal of Business and Economic Development
JF  - Journal of Business and Economic Development
JO  - Journal of Business and Economic Development
SP  - 113
EP  - 127
PB  - Science Publishing Group
SN  - 2637-3874
UR  - https://doi.org/10.11648/j.jbed.20190403.16
AB  - Income distribution is a major and complex issue that directly affects the vital interests of hundreds of millions of people. To deepen the reform of the income distribution system, it is necessary to clarify the accurate connotation of the relationship between “fairness and efficiency” under the framework of “incentive-constraint”, make a correct analysis on the causes of income differences, and lay a foundation for understanding the rationality of the policy. The basic idea of optimizing income distribution in China should be to use the vision of common prosperity as the “goal-orientation” and combine the “problem-orientation” to accelerate the strategic transformation from “getting rich first” to “getting rich together”. The basic principles to be followed are the following: encourages entrepreneurial innovation with reasonable income distribution; recognizes the contribution of each factor and combines the distribution according to work with the distribution according to other factors; and appropriately allows and tolerates the expansion of the income gap in the first half of the “inverted U curve”, that is, actively adjusts and holds “polarization”; builds a system-engineered distribution system with promoting transparency, encouraging enthusiasm, promoting harmony and helping the weak as essentials; promotes the dynamic optimization of the distribution system and policy system with reform, namely effective institutional supply as the leader. On this basis, establish a system of initial distribution of national income with sound rules and fair process; establish a system of national income redistribution with appropriately equalized results; improve the third distribution system of national income; and promotes the reform of the supporting system for national income distribution.
VL  - 4
IS  - 3
ER  -

Copy | Download