Research On The Optimization Of Government Financial Subsidy Strategy For “Replacing Man With Machine”

Based on the background where Chinese government is vigorously promoting the project "replacing man with machine" in manufacturing. This paper mainly studied the optimization of government financial subsidy strategies on manufacturing firms in the project "replacing man with machine". Firstly, sequential game models of "government- equipment suppliers- equipment buyers" were built up respectively under fixed ratio and fixed volume subsidies in a situation where one supplier exsits only and as a consequence, optimal allocations of subsidies were derived with the goal of maximizing equipment purchase quantity and average surplus per unit equipment, and so, subsidy capital using efficiencies under optimal allocations of two subsidies were compared.Furtherly,in a situation where two product-quality different suppliers co-exist,the above questions were researched with a goal of maximizing equipment purchase quantity.Lastly, based on what had been analysed and concluded, as well as the characteristics of two different subsidy types; suggestions on the strategy optimization were put forward in three aspects such as subsidy type choosing, subsidy capital allocation and subsidy strength adjustment.No matter there is one or two equipment suppliers, the same were found. First, allocating total subsidy to equipment buyers is optimal under fixed ratio subsidy while under fixed volume subsidy, subsidy effectiveness is constant in all allocation schemes.Second, the capital usage efficiency of fixed volume subsidy is higher than that of fixed ratio subsidy, under the optimal capital allocation of each subsidy type.