Economic growth is the eternal theme of theoretical research,and institution is undoubtedly an important factor to promote economic growth.Most existing research is included in related fields such as（new）institutional economics and development economics.Form methodology,there are two types that almost all of the existing research belongs to:One is to inherit neoclassical traditions and adhere to individualism,to consider institution as an exogenous factor and to explore incentives and constraints to the behaviors of individuals in order to achieve the optimal allocation of resources; The other type is seen as the heresy of modern economics that upholds holism,primarily adopts the analysis of experiences and case comparison,and focuses on the design and changes of institutions as well as their relationship with economic growth.However,it is always difficult to discover the functioning process and mechanism of institutions promoting economic growth and the relationship between institution and other factors determining economic growth.One major reason is the lack of basic framework and normal method that can be applied in the whole research,forming a network that main line and main connecting points of the research are interconnected and a basic model or system that can be used comprehensively during the study.The main aim of this study is just to explore more feasible ways and scientific methods for the establishment of analytical framework that is based on behaviors and can be analyzed by modeling.

1.Basic Viewpoints

The intrinsic relationship between institution and economic growth is complex.Due to the form,core function and transformation of institutions,analysis within the classical framework on the functioning patterns and pathway to economic growth is frequently challenged fiercely by urgent needs in reality,and the theoretical lag and deviation from realism are often revealed.Hence,it is urgent need to expand research scale,to deepen cognitive level and to seek theoretical breakthroughs.

The complexity of intrinsic relationship between institution and economic growth is recognizable.The logical starting point is behaviors,and the specific approach is to relax basic assumptions of behaviors.The rational degree of individuals is differentiated and interacted,and there is the co-evolution relation between behavior and institution,the impact imposed by institution on economic growth is multi-factorial,multi-mode and multi-channel,and the functioning process and results are diverse and are both cause and effect interdependly.As a result,it is required to build and use suitable game models and logical diagrams that can reflect their relationships,such as for behavioral game experiments,cooperative games and evolutionary games.

The influence of institution on social and economic development is comprehensive,with a wide range in application,thus needing a combination of a variety of empirical methods to test,evaluate and support.In the expanding range of application,new visions,concepts and modes are also required.

2.Main Contents

This book contains 3 parts with 13 chapters,as well as introduction,conclusion and appendix.

The individual's behavior is selected as the basis and starting point of theoretical analysis,interconnected hubs and the main line through the whole research process,and we like to take the content of new institutional economics as foundation and research paradigm,to apply relative game models and symbolic logic language as the main form and special feature,to build and form theoretical analysis framework and logical main line that examines the intrinsic relationship between institution and growth,and to deepen and expand gradually technical routes.The first part is the theoretical foundation of this book,mainly includes the following 4 chapters:the relationship between economic growth and institution as well as behaviors and related literature review of research methods in modeling; deep thinking on the analysis of behavior characteristics and the functions of institutions; the intrinsic relationship of institution and economic growth represented by game models based on behavioral analysis; causes and pattern selection of institutional changes from the perspective of evolutionary games.

In exploring functions,changes of institutions and the intrinsic relationship between institution and economic growth,the research starts from behaviors of individuals and uses modeling approach.During the study,we select several aspects and key factors in order to examine the complex relationship and transmission mechanism of institution and economic growth in depth from various aspects.The second part is the analysis on special topics,mainly includes:institutions on property rights and economic performance—focusing on institutional construction of resource endowment and property allocation,and its important influence on behavior selection and economic growth; theoretical discussion when considering contract as an institutional arrangement; market institutions and market performance—researching the interactive relationship of consumer preferences and heterogeneous products; institution arrangement of enterprises—exploring diversified contract governance based on game equilibrium; economic growth and social harmony based on trust—focusing on the influence of intangible institutions and cultural environment.In this way,it does not only make various institutional factors more clarified in the relationship between institution and economic growth,but it also highlights the adaptation,demonstration and the important effects of the methods.

Due to the inherent complexity of institution and rebelling against neoclassical traditions at the beginning of founding the theories,although in some cases issues concerning institutions can be partially analyzed step by step by using reduction theory and deduction,it is not easy to recognize the overall institutions and their relationship in a reverse way.In addition,concepts and indicator of institutions are not perfect or clear,it is extremely limited for empirical analysis to use quantitative methods.Therefore,it is better to use a variety of empirical methods with multi-perspective,multi-layer and multi-dimension，and examine institution and related issues in a more comprehensive and systematic way.By doing this,not only special features of the theoretical system can be kept and improved,but it can also combine theoretical analysis and empirical analysis in a better way,achieving common improvement and development of these two aspects.The last empirical part contains 4 chapters:empirical analysis on review and evaluation of China's reform process with evolution view; significance of coordinating individuals and groups by analyzing supply of public goods and public participation as well as enterprise institutions and its performance;exploring the relationship between institutional factors and output performance with econometric methods; analyzing the relationship between institutional performance and policies effect for developing agriculture as well as income of farmers using integrated modeling and micro-simulation based on farmer' behaviors.The main aims of the empirical analysis can be seen as two aspects:For one thing,it can help to obtain empirical support,to some extent,for the theoretical conclusions; For another,it explains that the adaptability and effectiveness of empirical and theoretical analysis are conditional and selective.In the end,the entire research is summed up,and conclusions and suggestions are provided.

3.Exploration and Attempting

In general,our study has tried to do some active exploration and useful attempts in the following aspects.

（1）Creating a new analytical framework.The research tries to link behavior-institution-growth in well-organized way,and to form a theoretic analytical framework integrating the three elements and relative game model approach based on behaviors.In exploring changes of the relationship between individual behaviors and group behaviors,the intrinsic relationship between institution and economic growth is examined:fundamentally speaking,specific institutions of various types and forms have impact on individual behaviors,and other factors can be seen as conditions affecting structural evolution and effects,and then accumulate into group behaviors thus promoting economic growth.

（2）Proper application and empirical testing.In theoretical analysis,common issues in the basic level such as evolutionary game model for functioning and transformation of institutions are researched and explained,and the promotional effects of certain situations and factors of institutions to economic growth are analyzed in depth in the discussion on specific topics.In empirical application,the complexity of the research problem determines the combined and comprehensive application of various theories related to the issue so as to reveal the characteristics of individual behaviors and the intrinsic interaction between institution and growth in a more integral and real way.

（3）Significance of methodology.When studying complex social and economic issues like the relationship between institution and growth,it is required to adhere to the principle of practice-oriented and people-oriented and advocate the integration of individualism and holism.As for methods,micro-macro-linked model and analytical approach based on individual behaviors is adopted,and objective laws of development should be obeyed.For example,the combination of forefront contemporary economic theories and information and network technology such as high performance computing helps to explore the interaction between theory and practice,which is the new feature in contemporary research,and logical deduction ought to be subordinated to and serve to the intrinsic link,development and change of research subject.

4.Preliminary Conclusions

The diverse relation between individual behaviors and group behaviors is the premise of the institutional existence,and the core function of institutions is to coordinate and promote coherence of them.In the analysis of institution,methods of variable selection,multi-dimension depiction,setting of alternative index variables,the classification and decomposition of effects all have their specific applicable areas; the involvement of behavioral analysis and construction of game models is necessary and appropriate in analyzing the intrinsic relationship between institution and economic growth in a more general stage.

The transformation of institution is an important factor that promotes economic growth,the effect of which is closely related to the features of individual and group behaviors.When the evolution of individual behaviors and group structure goes near the critical point and under certain structural and environmental conditions,institution plays a decisive role in the direction and pattern of growth.

Institution and growth mutually influence and promote each other,and are reciprocal conditions,causes and effects.In analyzing complex issues such as the relationship between institution and growth,a universal conclusion should not be made,and it ought to be cautious to apply views obtained from partial analysis.In the contrary,the overall role and coordinated function of institutional system should be emphasized.

By using basic views and preliminary conclusions of this research,the design,formulation,implementation,evaluation and transformation of institutions in many specific circumstances are expected to be improved significantly and conducted effectively.

5.Study and Further Work

In related future research,behavioral analysis is needed to be further expanded,deepened and refined,and the types and characteristics of individual and group behaviors are to be straightened out; to have close contact with important hot issues in reality and provide with analysis,discussion and reasonable explanation on specific topics that are more systematic and rigorous from the perspective of institutions; to create more applicable models and utilize modern scientific technology methods in order to explore better the behavioral motives of intrinsic interaction of institution and growth in a deeper level.For the design of institution and selection of evolution path,implementation suggestions and measures that are more valuable and specific should be proposed.

Acknowledgment for members of our research group and others who help us.