Pollution,Monetary,Government Expenditure,Fiscal Policy And Economic Growth

In this paper, we discuss two types of economic growth models——deterministic growth models and stochastic growth models.First, we studied the allocation of human investment by inducting the pollution into the Uzawa-Lucas Model. The balanced growth rate was gained with the dynamic optimal method when exogenous allocation was considered. And also a conclusion that the negative utility produced by pollution had negative effect to per capita consumption and per capita physical capital growth rate, and no effect to per capita human capital growth rate. The optimal growth path was gained with endogenous allocation. We concluded that the negative utility of pollution bring on both negative infection to per capita consumption and per capita physical capital growth rate, but uncertain infection to per capita human capital growth rate. What is more, we got the optimal allocation of human investment.Second,we inducted the currency into the model, and set up a stochastic economic growth model mainly about monetary policy and fiscal policy without considering the government issuing bonds. We derived the consumption-wealth ratio, the mean growth rate of economic,the growth rate of money and the portfolio shares using stochastic optimization method. And the complete system was also gotten. We discussed the determinants of consumption-wealth ratio and equilibrium growth rate, and fiscal policy and stochastic shocks on economic growth were mainly studied. The relationship between the mean growth rate of economic and the portfolio share of monetary to the whole wealth was negative correlative. Namely, when the mean growth rate of economic increased, then the portfolio share would decrease. The tax rate to consumption and to the uncertain income would reduce the consumption-wealth ratio.At last,we inducted government expenditure into the production function and the utility, setting up a continuous-time stochastic endogenous economic growth model with considering the government issuing monetary. We derived the consumption-wealth ratio, the mean growth rate of economic, the rate of inflation, the growth rate of money and the portfolio shares using stochastic optimization method. The effects of government expenditure, taxes and stochastic shocks on economic growth were also studied. The tax rate on the consumption would reduce the consumption-wealth ratio.