The institutional economics points out that it is necessary for a government to constitute a system when individual behaviors have negative externality.To do so, internalization of social cost and collective rationality can be achieved.However, the system must accord to individual rationality and be internalized, otherwise the system can't work well.In China, the demographic transition has been going on under the government's intervention.Therefore, to judge whether the demographic transition is accomplished, we have to examine whether the reproductive culture and notion have been changed.The author thinks that the demographic transition has not been done yet, because the internal mechanism facilitating to stabilize the low fertility has not been formed.Only if the people are willing to choose the low fertility and the low fertility is stabilized, the real demographic transition can be achieved.
