Economic Analysis of Involution and Governance Measures
The paper defines involution as the excessive participation and consumption of social resources caused by excessive competition,and points out that the causes of involution lie in the limited resources and the lack of innovation,the lack of rule enforcement and insufficient mobility of participants.The principle of involution of Pigovian tax's external effect provides a theo-retical basis for the design of involution tax in this paper,which implies prohibition of involution by taxation,which is beneficial to correct negative externalities and restrain involution behavior.This paper designs the anti-involution system and puts forward the anti-involution policies and measures to restrict the behavior of involution through the punishment mechanism of taxation,the subsidy mechanism of low income,the restraint mechanism of competitive proportion and a series of policy measures.