Research on policy formulation in social aid From visual angle of welfare economics

Social aid is the basic social security. At present, aid funds are insufficient and aid methods are not appropriate and aid efficiency is low in China. Policy formulation is a crucial link in the process of public policy. In order to maximize social welfare and obtain good effect of social aid policy, policy formulation of social aid should be aimed not only at justice and distribution according to need but also at reducing loss of efficiency. Additionally, policy formulation for social aid should urge charitable donation and thus achieve Pareto improvement of social welfare.