The Stochastic Model Of Endogenous Growth With Congestion

And we consider two cases: one is that congestion has consumption utility, the second is that congestion has production utility. First, we discuss the congestion has consumption utility. Using stochastic dynamic optimization method, we gain consumption-wealth ratio, physical capital-wealth ratio and equilibrium economic growth rate of individual decision-making in equilibrium. Then we mostly consider the welfare analysis about consumer and get such a crucial conclusion that the advances of three parameters including tax rate, stochastic fluctuation and government purchases rate bring with opposite influence between equilibrium economic growth rate and consumer welfare. As a following, we calculate optimization policy parameter in two especial cases. At last, we compare individual decision-making with social decision-making and find that social decision-making can get more economic growth rate and less welfare than individual decision-making. Second, we discuss the congestion has production utility. As the same with the first model, we get equilibrium economic growth rate of individual decision-making by stochastic dynamic optimization method. And we construe the influence about model parameter to equilibrium economic growth rate. Then we gain the main conclusion that equilibrium economic growth rate will be the most choosing endogenous government purchases rate. At last, we compare individual decision-making with social decision-making and get the optimization revenue rate.