Improvement For Several Macroeconomic Models

Economic growth is a great problem concerned by every governments and all sectors of society,its research is also in development and progress constantly and the methods for researching are all in difference.This paper mainly analyzes several deterministic economic growth models by researching their mathematical models.By the method of dynamic optimization,solving the equilibrium value of the model and holding the static and dynamic analysis and comparison analysis for the models.First,two basic economic growth models—solow model and Ramsey model are presented. Sovling the balanced value of solow model in mathematical and economic thoughts and analyzing the convergence of it by images.Analyzing the Ramsey model with the influence of population growth and technological progess in which their rates of growth are nonzero constants. Through the ananlysis ,It gets that there is no effection of population and technical progress can make the economy reach equibrium more easily and accelerate the speed of economic convergence.Then,we analyze the Uzawamodel with subsidies. First, analyzing the model with saving subsidy by improving the process, we concluded the equilibrium value and how it related to the saving rate and tax rate. Second, analyzing the model with education subsidies not only by improving the process to conclude but also adding the education subsidies to the accumulation of human capital. Third, analyzing the model with saving subsidies and education subsidies. The tax and saving subsidies is reflected in the accumulation of capital meanwhile the education subsidies is reflected in the accumulation of human capital. Based on this, establishing intertemporal decision-making problem, then solving the model and comparing to the first two models. Finally, introducing the public spending into the endogenous growth model. Considering the social effects, adding the welfare effects ang production effects to the model and establishing social planners across problems. Analyzing the model by the same method in conducting the model of single effect and comparing to it. After that, improving the model with the welfare effects of public spending by improving the production function, it is concluded the basic differential equation of model.