Fiscal Policy Macro And Resident Welfare Effect

Fiscal policy is one of the main means of macro-control and plays an important role in promoting economic development and improving residents' welfare.Since entering the new stage,China urgently needs to make solid progress in transforming its development model,optimizing its economic structure,and transforming its growth momentum.However,it is also facing downward pressure on the economy during the transition period.This is undoubtedly a huge challenge for China,which is in the stage of comprehensively building a well-off society and comprehensively fighting poverty.The key to the formulation and implementation of fiscal policies,the precise implementation of precise policies,and the full use of the macro-oriented role of fiscal policies is to accurately analyze the effects of active fiscal policy.This paper constructs a new Kane dynamic stochastic general equilibrium model of five sectors including residents,final product manufacturers,intermediate product manufacturers,financial departments and central banks.Among them,residents make behavioral decisions based on the maximum utility discount and labor utility discount under the constraints of budget constraints;final product manufacturers make production decisions based on maximizing profits;intermediate product manufacturers make production decisions based on cost minimization;The financial department obtains income through the organization of valueadded tax,progressive labor income tax,progressive capital income tax,and issuance of government bonds,and makes total expenditures in accordance with budget constraints;the monetary department implements price-type monetary policies based on interest rate rules.In this paper,two methods of calibration and Bayesian estimation are used to determine the model parameters,and the macro variables and resident welfare are obtained through the Matlab software and the dynare processor.The impulse response process for positive finances is analyzed on this basis.And residents' welfare effects.Finally,by comparing and analyzing the macro and residents' welfare effects of different types of fiscal policies,the research conclusions and policy recommendations of this paper are put forward.This paper draws six main conclusions:(1)Reducing capital income tax can promote total output growth to the maximum in the short term,and reducing labor income tax can promote total output growth in the long run.(2)Reducing labor income tax can stimulate the growth of household consumption.(3)Reduction of capital income tax has a significant promotion effect on residents' investment.(4)Increasing the scale of fiscal expenditure and reducing VAT have the greatest effect on increasing employment.(5)Inflation is particularly sensitive to reducing VAT.(6)Reducing the value-added tax can most obviously improve the welfare level of residents.Based on the conclusions,relevant suggestions are made:(1)Expansion of fiscal expenditure must be matched with structural tax cuts.(2)Active taxation policies should focus on reducing VAT,supplemented by reducing labor income tax and capital income tax.(3)Continue to optimize the structure of personal income tax.