| Since the implementation of the taxation reform in 1994,the structure of finance expenditure in China reflects characteristics of solidification and systematisms bias that harms the long-term economic development.Meanwhile,there is a number of new characteristics occurred in the structure of finance expenditure in China.First,the proportion of economic construction expenditure overtop the other.At the early stage of economic development,economic construction expenditure,as a primary public finance expenditure,can adapt to the stage characteristics with poor economic base,improve the investment returns in private sectors and ensure the high-speed development of economy.When the economy reaches a certain level,the investment efficiency of economic construction expenditure declines sharply,and it generates market failure and prominent contradiction between economy and society.Thus,the demand of fairness of public finance expenditure has been appeared gradually.Second,the proportion of public consumption expenditure is insufficient.Over-investment of economic construction expenditure distorts the efficiency of resource allocation among the production factors and pricing mechanism,which causes the phenomenon of "dislocation","absent" and "offside" among governments.Consequently,many issues such as inadequate innovation ability,unbalanced economic development,and enlarged income inequality are triggered.Increase of occupation of the public consumption expenditure is helpful to solve the social risk existing in the process of the economic development and relieve the decline of resource allocation efficiency caused by the overtopped economic construction expenditure.Third,shortage of green fiscal expenditure system is appeared.Extensive economic growth mode of China economy causes serious issue on environmental pollution.Negative externality of environmental pollution appears constantly.Currently,low standard,narrow range,and weak executive power of the environmental regulation and policy in China cannot have the effect of environmental governance.Therefore,to achieve the coordinative development between the economic growth and environmental control,it is necessary for China government to improve the green taxation system,relieve the twist effect of environmental taxes,enhance the resource allocation efficiency,and accelerate the transformation of public governance mode as to environmental pollution by using of marketization.Aiming at issues mentioned above,the article expands the study from the following perspectives,infrastructure investment structural transition in the process of economic development,structural optimization of policy-related subsidy under the innovation incentive target,public consumption expenditure structural transition in the evolution process of income inequality,and green fiscal expenditure structural optimization in the path of pollution accumulation.Research results of each main chapter are shown as below.1.Infrastructure Investment Structural Transition in the process of Economic DevelopmentStart from different policies-oriented goals of infrastructure investment,this chapter establishes a theoretical model between the change of infrastructure investment structure and the process of economy development.The theoretical analysis shows that in the low level of economic growth,the increased proportion of general infrastructure investment is conductive to the economic growth,while it has a weak impact on the evolution of independent innovation.With the increasing level of economic growth,the increased proportion of tech-oriented infrastructure investment plays a great role in promoting the economic growth,and accelerates the evolution of independent innovation.Meanwhile,the timing for the change of infrastructure investment structure decides the potential performance of economic growth and the evolution of independent innovation directly.The empirical results present that the general infrastructure investment had a stronger impact on the economic growth than tech-oriented infrastructure investment from 1998 to 2005,while the tech-oriented infrastructure investment had a stronger effect on the economic growth from 2006 to 2013.In the perspective of the evolution of independent innovation,the tech-oriented infrastructure investment always had a stronger impact than the general infrastructure investment.Therefore,the government should take both the goals of independent innovation and economic growth into consideration while formulating the policy for the change within infrastructure investment structure,and implement the policy properly based on the relative size of the marginal effects of the two types of infrastructure investment,in order to maximize the potential for economic growth.2.Structural optimization of policy-related subsidy under the innovation incentive targetThis section develops a theoretical model to explore the dynamic relationship between the policy-related subsidies and economic growth.The model reveals a reversed U-shaped relationship between policy-related subsidies and the steady-state economic growth,and different types of policy-related subsidies perform differently.Furthermore,the optimal structure of subsidy for both low-tech and high-tech industries outperforms subsidizing only one of the industries in the steady state;however,the optimal policy in the steady state does not achieve maximum output in the economic growth path.Moreover,a gradual and developing transformation of the structure of policy-related subsides could release the economic growth potential,and the timing of transformation depends on the trade-off between long-term and short-term policy goals.The empirical results confirm the theoretical findings.Therefore,during the policymaking,the government should balance the short-term and long-term policy goals,select the proper structure of subsidies based on the stage of development and characteristics of innovation industries,and transform the structure of subsidies timely to maximize the potential of innovation development and economic growth.3.Public consumption expenditure structural transition in the evolution process of income inequalityStarting from the dynamic deductive relationship between static inequality and dynamic inequality,OLG Model of public consumption expenditure structure and the evolution process of income inequality is established in this chapter.The research discovers that influenced by the dynamic inequality,the static inequality presents strictly state of monotone increasing if without the policy intervention.Moreover,the impact of static inequality on the economic growth presents inverted U-shaped relation.To solve this,it is essential to improve the dynamic inequality,but different public financial policies implemented by the government has great different effect.Additional,decline of the dynamic inequality caused by the improvement of social mobility is the reason why the Kuznets curve formed.The empirical results prove the conclusion.Hence,when formulates the public fiscal policy structural transition,the government has to weigh the efficiency and fairness.In the early stage of economic growth,static inequality has been getting worse and worse so the public fiscal policy can be more towards the social security expenditure,promoting the economic growth while maintaining the low static inequality.When economy grows to a certain level,the public fiscal policy should increase the proportion of public education expenditure as soon as possible and reduce the dynamic inequality via improve the social mobility to achieve decline the static inequality while maintain high economic growth.4.Green fiscal expenditure structural optimization in the path of pollution accumulationFrom the perspective of the heterogeneity of industries sector,this chapter considers the influence of factor input structural difference on the effect of environmental regulation policy in terms of the heterogeneity of industries and establish a theoretical model that is the impact of environmental taxation policy on economic growth and environmental governance.Through the derived mathematical model and the numerical modeling,it finds out that the environmental tax policy guided by the green R&D subsidy exists growth trap while guided by the producer green price subsidies exists pollution trap;guided by the consumer green price subsidies exists growth trap.Guided by single policy subsidies,the formulation of an environmental tax policy faces the restraint of environmental tax rate.Nevertheless,under the low environmental tax rate,when the green fiscal expenditure structure is between 0.2-0.4,acceleration of the environmental tax policies on coordinated development between the economic growth and environmental is maximum.Empirical findings verify the existence of growth trap and pollution trap in the process of implementing environmental regulation policies.Therefore,green fiscal expenditure structural optimization plays a vital role in China’s environmental governance and design of the environmental regulation policies,especially for central and western regions in China. |
