Connotation of " Adaptive efficiency " and Nudge to the Transition of the Inst itution of Our Country--Critical Comments on "the Second Paradox of North "

Adaptive is an important concept put forward by North in his later theoretical research in probing into the performance of the long - term economic growth in order to reflect the institution changes efficiency to adapt to the economic changes. North found that it is the problem of form rather than the input and output of factors under the prerequisite of set priori organization that can affect the economic performance. Different from the disposing efficiency , which only reflects static short - term economic performances, adaptive efficiency , explores how the long -term Institution structure to meet economic changes. Starting from this point, this paper holds that the sustainable development of our country s economy is a problem of effective conversion among the various economic advantages during different stages. The disposing efficiency depends on the market mechanism, while adaptive efficiency relies on Institution change. The market mechanism can only solve the problem of the effective disposition of resources instead of that of the orderly conversion of the economic advantages. Adaptability is carried on in the course of transition; therefore it is significant to explore the appropriate transitional Institutional arrangement.