The Optimal Scale Of Chinese Fictitious Economy

In recent years, central banks and governments have attached great importance to the development of the fictitious economy, and have adopted policies to guide the development of the fictitious economy to support the real economy, and repeatedly stressed the need to maintain the fictitious economy and real economy coordinated development. Many scholars believe that only a modest scale of fictitious economy can play a catalytic role in the economy, but is there a optimal scale of the fictitious economy lacks rigorous mathematical proof.In this paper, I use a general equilibrium model to prove the optimal size of the fictitious economy on the basis of the analysis of the development of fictitious economy and the relationship of fictitious economy and real economy. There is not a specific standard of definition of the fictitious economy. Therefore, on the basis of domestic and foreign scholars’ definition, this paper seeks easy to quantify and relatively precise definition. In the study of fictitious economy and real economy, the paper uses qualitative and quantitative analysis method of combining, from two perspectives on analysis of the relationship between the two. This study focused on a general equilibrium model framework, insert the new convexity properties production function to build a equilibrium model including companies, intermediaries and family investors, and use mathematical proof to prove the existence of the optimal solution of fictitious economies. The results show that only when the fictitious economy refers the financial sector, and the financial department’s main role is to monitor and reduce production enterprises invalid output, the optimal size of the fictitious economy can make the total production maximized.