Research on factors of encouragement and constraint in market economy

This paper is aimed at analyzing a mechanism ------- encouragement and constraint, which are considered essential factors for a market economy. Encouragement and constraint are related to resource distribution. Neither of them can be neglected in the process of economic transformation, but encouragement is more preferable. In order to make an effective resource distribution, it is critical to establish a system composed of encouragement and constraint, which is believed to be an impetus of promoting economic efficiency.