The Dynamic Input-Output Model And The Study Of Government Incomes And Expenditures

By constructing several dynamic input-output models, this thesissystematically exploits the field of government incomes and expenditures. Itsmain contributions are embodied in the following aspects:First, we build a dynamic input-output model with a proportional tax onthe gross product. The difference between our model and previous studies isthat we introduce the public consumptions into utility function and the publicinvestments into production function separately. Using the pontryagin'smaximum principle with constant return to scale technology, we find theformula of tax rate on the steay state.Based on above research, we construct a dynamic input-output modelwith value added tax, corporate income tax and personal income tax jointly.Through the analysis of our model, we find the computing formula of the ratesof these three taxes. Our study suggests that the optimal personal income taxrate equals the utility elasticity of public consumption, so if more publicconsumptions such as national defence and public medical treatments arepreferred, the government should levy more personal income taxes. For theoptimal tax rate of the value added tax and corporate income tax, we give aformula which represents their relationship.Finally, using practical data of China and with reference to some formerstudies, we calibrated related parameters of our model. Through calculatingand analysis, we draw a curve wihich represents the relationship of theoptimal tax rates of value added tax and corporate income tax. If either ofthese two tax rates is predetermined, the optimal tax rate of the other tax canbe deducted from our tax rates curve.The study of this thesis will serve to evaluate the functions ofgovernment economies more clearly, and make fiscal policies more soundly.Keywords: taxation government expenditures...