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By Tingjin Lin (auth.)

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Moreover, one may discover that institutions are not of equal importance for different conceivable outcomes. The various levels of institutional influence on the policy outcome (such as educational disparity) will also be tested by constructing this causality. 84 Rational actors in economic theory seek to maximize their own net advantage. Methodological individualism involves taking the perspective of hypothetical individuals in choice situations. Yet this assumption seems too narrow to analyze a complicated society which involves many anomalies, social dilemmas and puzzles.

2 Opportunistic behavior and institution Opportunism is self-interest seeking with guile. 75 This position is close to a few key notions of economic organization theory76 and the new institutionalism,77 32 The Politics of Financing Education in China which offer a framework for institutional analysis on the basis of the assumption of opportunistic behavior. Based upon Weber’s idea that political institutions restrain authority relations,78 the institutionalized rules will offer strong restraints upon the use and abuse of power.

Organizational leadership can also be expressed as two organizational principles that “the party manages cadres” (dang guan ganbu) and “manages one level lower” (xia guan yiji), which means that the center manages provincial cadres and provincial committees manage prefecture cadres, and so on. Thus, the political mobility of a provincial leader depends on the center rather than on political election. Such logic is suitable for anyone in the local political system; for someone who is formally a bureaucrat, political mobility becomes the main incentive.

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