Allocation Of State-owned Capital Gains

For a long time, economics don't pay appropriate attention to the allocation of state-owned capital gains in theory or practice, which is concerned with important issues of China economic transition, such as the reform of SOE, improvement of national income distribution system, economic growth and social development. Therefore, it's necessary to research the allocation of state-owned capital gains.In the perspective of SOE profit allocation and state-owned capital gain expenditure, this paper focuses on the allocation of state-owned capital gains in China. We assume that government maximizes social welfare in according to the public ownership of state-owned capital and principal-agent structure. This paper set up a model with stationary optimal theory in seeking the optimal structure of state-owned capital gains' expenditure, which gives conclusions as follows:Firstly, the optimal structure of state-owned capital gains expenditure is depend on the marginal contribution between economic and social goals to social welfare; Secondly, in the economic transition period, the marginal contribution of investment and public welfare expenditure to social welfare is affected by many factors, such as income distribution discrepancy, state-owned capital's ratio, SOE operation efficiency, private capital growth cycling fluctuation and the capital elasticity on production. These factors also affect the structure of state-owned capital. Thirdly, according to expansion of income distribution discrepancy, decreasing of state-owned capital's ratio, lack of public social welfare expenditure and imbalance of consumption and investment, it is important to increase the ratio of state-owned capital gains turned over and social welfare expenditure of state-owned capital gains.The practice of state-owned capital gains allocation is also studied in. This paper constructs a budget system of state-owned gains, giving some advices and principle to the policy of state-owned capital gains' revenue and expenditure. In short, this paper sheds light on the allocation of state-owned capital gains.