The Development of Efficiency Theory and The Government's Microeconomic Role

In new classical economics,the Complete Competition Model(CCM) and ideal allocative efficiency are ultimate criterion of justifying the government's micro-economic intervention. The development of the X-efficiency theory and the dynamic efficiency theory has broken through the narrow perception.From the perspective of market as an information (knowledge) discovery process, the modern Austrian school put forward the concept of Catallactic Efficiency, and they notice that new classical economic inefficiency is not a necessary condition for the governments's intervention.It is important for the government not to pursue Robinsian economic or allocative efficiency,but to create institutional conditions for economic entity's pursuing economic efficiency,i.e.to facilitate Catallaxy.