In this paper, the pumping mechanism in the closed Ξ-type three-level system can be simplified using the coherence induced by the two-photon process. The system exhibits either lasing with inversion or lasing without inversion so long as there exists the pumping field. The system exhibits the transition from lasing with inverson to lasing without inversion under certain conditions. Near the transition lasing without inversion may be as efficient as lasing with inversion.