Resource allocation model

There are two main ways to allocate resources: planned allocation and market allocation, namely planned adjustment and market adjustment.

1, planned allocation is planned adjustment, which refers to the way that government planning departments realize resource allocation through the action process of planning mechanism according to social needs and possibilities. There are three main planning mechanisms here, namely, planning indicators, economic leverage and economic policies.

Since the state has formulated policies and objectives in advance, it is said to be adjusted in advance. Because of government regulation and intervention. The government actively participates in market activities, just like a pair of tangible hands, so it is also called a visible hand.

2. Market allocation means market regulation, which refers to the way to allocate resources by relying on market mechanisms. Since the market allocates resources, it must be adjusted after some changes have taken place in the market, so it is an after-the-fact adjustment, and the market spontaneously allocates resources, so it is an invisible hand.

We say that the market is spontaneously regulated by market mechanism, mainly through price mechanism, supply and demand mechanism, competition mechanism and risk mechanism.

The advantages of market distribution are as follows:

1 strongly urges commodity producers to improve production, improve management and adopt advanced technology, thus promoting the progress of production technology and the development of social productive forces.

2. Promote the concentration of resources to more effective links, and promote the improvement of efficiency and effectiveness. In the price mechanism, when the price of a commodity rises, the producer will increase production if it is profitable, and then the resources will be concentrated in the links with better benefits.

3. Provide a large amount of market information sensitively and agilely, effectively guide the economic behaviors and activities of commodity producers, operators and consumers, thus promoting the rational flow of social resources and production factors along the direction of market demand. It provides a lot of market information through price.

4, according to the contribution of production factors and market efficiency distribution, promote the efficiency of resource allocation.