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Based on transaction cost theory, this paper explains the logic of the combination of medical care and pension. The transaction costs which incurred in the transformation between medical care and pension for the elderly are firstly analyzed. Secondly, the medical-nursing combined mechanism of saving transaction costs, has been illustrated from the perspective of assets specificity, frequency, and uncertainty. Then comparing with the practice, this paper puts forward the path of the combination of medical care and pension from the aspects of environment, technology, and resource.

The Path of the Combination of Medical Care and Pension -- From the Perspective of Transaction Cost Theory