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The Standard Economic Model Has Been Improved by Psychological Factors

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1 with the development of market economy, government have gradually interfered the markets and enterprise.

2 the function and responsibility of the government has been improving little by little.

3 the demand of the economic advance and the drawback of the markets and firms.

Theoretical analysis

1 the definition of government function

The functions of the government, which is also called administrative functions, in accordance with the law, the state and the public affairs management should bear the responsibility and the function . The function of the government reflects the basic content of public administration and the activities of public administration, is directive essential performance. The function of government plays a significant and critical role in the state management and the stability of economic substantial development

2 the content of the government economic function

1) The economic function is that the government for the state of the economy development of social economy, the life management functions. With the transition of economy government have three main economic functions: (1) the macroeconomic regulation and control functions, through the development and the use of fiscal and monetary policy, tax policy for the entire national economy national economy operation of indirect to control. (2) provide public products and service functions. The government through the government management, carry out industrial policies, plans guidance, employment planning of the whole national economy way of indirect to control; At the same time, but play social intermediary organizations and enterprises, and the power of government to jointly undertake the task of supplying public products. (3) the market supervision function. In order to ensure the smooth operation of the market, and ensure fair competition and fair trade, maintain the lawful rights and interests of the enterprise and enterprise and market of management and supervision.

3 the relationship between government and markets

With the advance of marketing economy, the connection between the state and markets have been more and more closely , government play a dominant role in economy development, markets require a strong and tough guarder to ensure its healthy and stable development ,but markets have their own defect, which may make them become out of order periodically. So the government will carry out relevant policy to balance the marketing economy development and return the proper track. In addition, market has its own advantage that it updates extremely quick and fast ,this will make the government adjust the relative policy to adopt to the market at the same time



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