Government Expenditure,Fiscal Rules,Education Investment And Economy Growth

This paper mainly studies a general equilibrium economy with government spending, fiscal rules and education investment. In the social reality, the government usually concerns economic development relatively, All the governments in the world try hard to search effective fiscal rules to accelerate economic development. At the same time, human capital plays a great role to the economic development, while education is one important way of the accumulation of human capital, so there is a consanguineous relation between education investment and the economic development. The main task of this paper is trying to establish and analyze models of government spending, fiscal rules and education investment on the basis of the hard works made by former persons. Besides, the paper mainly analyze both the dynamic characteristic of the economy and the relation of some economy variables under this model. The content of this paper is:In chapter one, the development of Growth Theory is briefly reviewed and the needed mathematic tools—optimization method are presented. Taking Ramsey model as a template, chapter two considers producing and welfare effect of the government spending, based on this model, discusses the optimal taxation, analyses the influence of government spending to consumers. In chapter three, we calculate the relation of fiscal rules and economic development, discuss the optimization scale of the government spending, analysis the influence of bond and taxation to the economic development. In the case of the producing function and using function with education investment, chapter four employs a continuous time stochastic endogenous economic growth model with education investment, discusses the optimization proportion between individual investment and government investment.