Analysis Of Asset Price Impact Mechanism On Dynanmic Efficiency

The issue of dynamic efficiency is the core to research on capital accumulation and economic growth. It mainly analyse the problem of resource intertemporal optimization. It is related to the welfare level of individuals and the economic development direction. However, with the development of virtual economy, the capital is flowing between real economy and virtual economy. When the existence of information asymmetry and financial system defect, irrational allocation of capital will be substantial accumulation to financial markets, resulting in asset price improve even produce bubbles.This will not only extrusion investment of economic entity sector, delay economic growth, but also the bubble will trigger a financial risk even financial crisis. The impact of asset price on dynamic efficiency has been concerned. Therefore, the study of dynamic efficiency is not only useful to broaden the research perspective of economic growth theory, but also in reality this analysis method to merge asset bubbles into dynamic efficiency is useful to improve the economic growth model and to optimize macroeconomic policy choices.Based on the theories of economic growth and the development of the dynamic efficiency analysis, from the standpoint of investment, consumption ,the text research on the impact of asset price on dynamic efficiency , using the theory and empirical mechanism, the method of combining under the new situation of China's economic dynamic efficiency of the system synthesis.The paper is divided into six chapters, whose main contents are as follows:The first chapter briefly introduces the background and significance of topics , research methods and the paper structure framework, put forward to solve the problem, future improvement initiatives place and further expand research.The second chapter is the theory and literature review. It reviews the theoretical basis and development process of dynamic efficiency. Then analyse the AMSZ criterion and the relationship between asset bubbles and dynamic efficiency. Systematically summarize the empirical research of the past. Finally, using the AMSZ standards, cointegration test, error correction model and so on measurement analysis method, it make the judgement of our dynanmic efficiency from1985-2008.The third chapter,firstly, based on the complex background of dynanmic efficiency, It analysis the impact of the inconsistencies of central planners and micro individual consumer choice behavior from the macro and micro view. Secondly, the dynamic relationship between asset prices and consumption is analyzed. Finally, reasons for deviation between intertemporal consumer choice and efficiency path of capital accumulation are revealed.The fourth chapter, it reviews theoretical basis and development process of the private investment, and then the mechanism of the impact of asset price on investment is analyzed. Secondly, based on the reality background of our country ,dynanmic efficiency of three departments is analyzed, by introducing government ,which supplied investment in public infrastructures, into the production function. The uncertainty impact of public investment on private investment is analyzed from marco and micro views. The last , the impact of asset bubbles on dynamic efficiency is analyzed in two-sector,and then expanding to three-sector, the impact of pobulic investment bubbles on dynamic efficiency is analyzed.The fifth chapter, it contains three part. It uses so many measurement tools,like Granger causality test, rolling VAR model system ,threshold cointegration test and so on , to do the empirical analysis from January 1997 to December 2010.With the gradual reform background,the mechanism of action of asset price on consumption and investment are empirical analyzed. The part on the basis of defining asset bubbles, respectively use K-Coefficient of Marshall and FIR as the measure of asset bubbles. Then use the annual data from 1990 to 2008 and some quantitative analysis methods, such as cointegration, to make an empirical research of the relevance between asset bubbles and dynamic efficiency.The sixth chapter, on the basis of combining the theoretical analysis with the empirical results, analyse and discuss the issue of China's dynamic efficiency and the impact of asset bubbles on dynamic efficiency in depth. Then make a comprehensive evaluation at last. Finally, the paper aims the reason that leads to dynamically inefficient of China's economy, and with the objective situation of China's economy, put forward some effective paths of improvement and the policy orientation.Through analyse and discuss in detail, the main conclusions of this dissertation are as follow: Firstly , the dynamic efficiency of China's economy from 1990 to 2008 is dynamically inefficient and that there is a certain level of capital accumulation excessively. Secondly, in the long run asset price has asymmetric wealth effect on consumption.; and the impact direction on investment has the trend from positive to negative, the impact degree has the trend from strong to weak. Thirdly, there is a high correlation between asset bubbles and dynamic efficiency. To a certain extent, rational asset bubbles have positive influence to dynamic efficiency.