Cost Analysis on Implementation of Land Equalization System in Tang Dynasty

In order to maintain political legitimacy, and gain financial income and labor force, the Tang government implemented Land Equalization system in the early Tang Dynasty. Compared with other possible land systems, Land Equalization system, akind of institution alarrangement, was advanced in early Tang Dynasty and produced bettere conomic and social benefits. After the middle Tang Dynasty, the abandonment of government traditional function for land resources allocation was not only the inevitable result of the social, political, and economic development, but also the final decision of the government to balance the cost and interests. When Land Equalization system trans action costs increased, revenues of the old system reduced gradually, and eventually the cost of the old system exceeded its income, abandoning the old one was definitely a wise choice.