The Theoretical And Practical Research On Optimal Scale Of Fiscal Revenue

The optimal scale of fiscal revenue is the quantitative reflection on the rational ratio between the government and market allocation of resources as well as the premise and accordance for the government to make macroeconomic policy, fiscal system and fiscal budget. As the influencing factors on the scale are complex and the extent is not easy to calculate, the domestic and overseas theoretical analysis is less systematic, applicable and scientific. The research on such a subject is full of theoretical and practical significance.The focuses of this paper are mainly on the following four issues: (â… ) Definition of concept of the optimal scale of fiscal revenue. (â…¡)Proof on existence of the scale. (â…¢)Examination and confirmation on the function of the optimal fiscal revenue. (â…£)Verifying and forecasting on the optimal scale of fiscal revenue.This paper proposes concept of optimal scale of fiscal revenue based on the analysis of overseas and domestic history and theory of fiscal development. Demonstrating intrinsic laws and maximizing trend and presenting hypothesis under which the optimal scale exists based on the extensive researches on the fiscal revenue status and changes in some countries. Proving rational existence of the optimal scale through quantitative analysis of economic development and scale of fiscal revenue. Introducing systematic dynamics and nonlinear economic approaches, this paper establishes the theoretical model based on the simulation research on a vast amount of data. Examining the theoretical model this paper proposes through analysis of the data using approaches of general equilibrium analysis, calculable general equilibrium model and comparative analysis.The innovative conclusions of this paper mainly include: (â… )Defining the concept of optimal scale of fiscal revenue in the context of a harmonious social and economic society aiming at the maximum utilization of public investment, social resources and social welfare, based on harmonious relations between the public economy and private economy. (â…¡)The theoretical innovation lies in incorporating consuming of public goods and private goods into a new growth model and making equilibrium analysis to justify the existence and stability of the optimal scale of fiscal revenue under conditions of pursuing the goal of social welfare maximum. (â…¢)Developing the Laffer Curve and proposing the hypothesis that the changing routes of the optimum macro tax burden as economic grows continuously. (â…£)The demonstration innovation lies in proving relations between the optimal scale of fiscal revenue and exogenous variable by introducing the system dynamics and nonlinear economic model approaches. (â…¤)Presenting the macro tax burden model and the selective areas of the scale under different economic development level. (â…¥)Proposing the predictor of the optimal scale of fiscal revenue based on analysis of selective routes of the optimal scale in China.