Research On The Effect Of Fiscal Policy On The Investment Of Family Human Capital Investment

The development of the world economic has entered a new era of knowledge-based economy with human capital as the core element,and human capital has always been regarded as the engine of long-term growth of the economy(Lucas,1977).China’s economy has experienced a long-term extensive development mode of resource-based and labor-based,the role of material capital is gradually weakening,and the growth is beginning to show weakness.Human capital has become an important source of strength for all economic entities to maintain their core competitiveness,and the transformation from a large country of human capital to a powerful country of human capital has also been implemented in China.As an effective means of macro-control of national economy,fiscal policy plays an irreplaceable role in promoting human capital investment.Especially in the post financial crisis period,prudent and steady fiscal policy as a whole has achieved good macro-control effect.So,whether the current financial policy implementation has achieved the expected incentive effect of human capital investment.Based on the basic theory of human capital investment and fiscal policy effect,this paper uses the research of Guvenen-Kuruscu(2006)for reference,adds human capital to household labor input,and introduces two types of fiscal policy shocks,fiscal expenditure and fiscal revenue,into DSGE model.The results show that:(1)The increase of the scale of fiscal expenditure will significantly improve the human capital investment of households,but with the increase of fiscal expenditure,the increase of human capital investment will gradually decrease,so it is speculated that there is an inverted U-shaped influence mechanism.(2)The crowding out effect of fiscal expenditure on physical capital investment will eventually weaken or even disappear due to the accumulation of human capital,and fiscal expenditure will eventually lead to the phenomenon of high output and high consumption.(3)When the effective tax rate of income tax increases,the negative impact on each macroeconomic volume is significant,which affects the economic operation mechanism and resource allocation,and reduces the enthusiasm of human capital investment.(4)The negative impact effect of tax revenue is less than the positive impact effect of fiscal expenditure,which shows that the reasonable allocation of fiscal policy tools can achieve the goal of stable growth of macro-control.In terms of empirical measurement,this paper constructs linear and non-linear measurement models to further test the effect of fiscal policy on human capitalinvestment.The results show that:(1)Fiscal revenue can significantly inhibit the scale of human capital investment,while fiscal expenditure(the allocation of educational resources)can significantly stimulate households to increase the level of human capital investment.(2)There is an obvious inverted U-shaped influence mechanism between financial expenditure and household human capital investment,which reflects that China’s financial capital redistribution mechanism structure needs to be improved.(3)The negative effect of fiscal revenue is less than the positive effect of many fiscal expenditures.The reasonable control of fiscal expenditure scale can make up for the human capital investment squeezed out by large-scale fiscal revenue.The empirical results confirm the conclusion of DSGE model.Based on the conclusion of this study,this paper puts forward some policy suggestions:(1)To improve the structure of financial expenditure,improve the efficiency of resource allocation,and expand the channels of supporting human capital investment.(2)Deepen the reform of the tax system and reduce the cost of human capital investment.(3)Making a reasonable allocation of fiscal policy tools and other supporting measures.