Theoretical And Empricial Analysis Of Dynamic Efficiency In Chinese Economy

Based on the two angles of pareto optimality under neoclassical framework and capital accumulation optimal within the framework of the new Keynesian, this paper respectively researches the dynamic efficiency of inspection from economy, policy and the factors affecting the choice of the research in three aspects; Firstly, the neoclassical framework references Abel et al. (1989) proposed AMSZ model with China’s urban and rural dual structure of the economy (market economy can be divided into urban and rural areas two departments) feature and extends the AMSZ criterion.The model assumes that the rate of population increase and the rate of technological progress are random and all the production department production technology level is generalization. There exists only for individuals and businesses in the economy, in which each generation lifetime there are only the young and the old; Secondly, the new Keynesian framework establishes a new Keynesian DSGE model of a closed economy under Ireland (2004)’s DSGE model on the basis of the introduction of capital accumulation equation and the expansion of production function.The model assumes the economic contains three main body:family, enterprise and government.In order to achieve utility maximization,homogeneous family provides labor and capital, consumption and investment.Producers are divided into the final product manufacturer and the middle, produce the final products and intermediate products respectively.The nature of the two products determines the final product market is perfectly competitive, intermediate product market is monopolistic competition and the intermediate product prices are sticky, there exists a certain adjustment costs.The central bank uses Taylor rule to adjust interest rates to achieve monetary policy.At the same time, this framework attempts to simulate parameters influence on consumption and capital balanced growth path through the impulse response analysis.Finally, according to the oretical model of dynamic efficiency test condition,this paper carries on the empirical analysis.Results show that the dynamic efficiency of the country’s economic growth until the 90s in a dynamic and effective phase, after 90s is converted to dynamic inefficiency.Besides,combined with the micro and macro factors to influence the efficiency of the dynamic and improvement measures for the exploration, we put forward the corresponding policy suggestions.