Consumption Optimization And Fiscal Policies

This paper analyzes the relation between consumption optimization and fiscal policies in a macroeconomic growth model. In this model, the consumer chooses a longtime consumption plan and maximizes his discount consumption utility function which subjects to his consumption, leisure, assets and public welfare expenditure. As we know, the consumption must yield to the budget constraint, and our model will give us the optimal consumption plan and the best trajectories of some variables in a general equilibrium economy. I try to find a stochastic model which can solve the optimal question and give some mathematics paraphrases about it. The paper mainly discusses the consumption optimization in a general equilibrium economy and the dynamic characteristic of the economy. The content of this paper is:In chapter one, the basic meaning of the consumption optimization decision in the macroeconomics is expatiated. We focus our mind on the equilibrium growth rate of consumption capital and the optimal discount utility, and analyze the influences between diverse economic variables. I take the Ramsey model as a template, giving the description of the model, the optimal condition of the question, the obvious analytic answer and some specific conditions. In chapter two, the technology is introduced to the consumption decision. We establish the economic model which bases on the model in chapter two and find some new results. The chapter three is an important one, in this chapter we introduce public welfare expenditure to the consumption decision, and analyze the correlation between the policy parameters and the public welfare. We obtain the optimal results in the general equilibrium condition, and compare the influence of a social agent on economic growth and welfare with a individual agent. The chapter four is the allelomorphic one of chapter three, in this chapter, we introduce public production expenditure to the consumption decision, and get some similar results to the former chapter. The chapter five is a integration of chapter three and chapter four, we also find some interesting results which can contain the previous ones.Both the foundation of model with consumption decision and analysis of the model are based on some theory. So it is drawn the conclusion that the models are actual significant and referenced value.