Structural Imbalance Of Investment Entities And Macro Investment Efficiency:Impacts,Mechanisms And Policy Responses

Under the macro background of China’s economic development entering the new normal,the imbalance of the structure of investment entities is an important reason for the sluggish economic growth.Since the implementation of supply-side reform and the spread of the new crown epidemic,the rationality of the main structure of investment has been increasingly paid attention to by the government.The efficiency of macro investment reflects the rationality of the structure of investment entities,and optimizing the structure of investment entities is inseparable from macroeconomic policy intervention.This paper introduces the variables of investment subject structure and macro investment efficiency,combines a variety of macroeconomic policy tools to construct a new Keynesian dynamic stochastic general equilibrium(DSGE)model,first analyzes the impact of investment entity structure imbalance on China’s macroeconomy and investment efficiency,and then empirically tests the mechanism of private investment and government investment optimization methods on China’s macro investment efficiency,and demonstrates the feasibility of fiscal policy and monetary policy to optimize the structure of investment entities and improve investment efficiency.Targeted policy recommendations were also given.The main research conclusions are: first,in general,the loss of macro investment efficiency is the result of the decline in effective investment scale and output caused by the imbalance of China’s investment main structure;Specifically,the existence of benchmark interest rate transmission channels makes private investment in the main structure of investment more conducive to improving investment efficiency and increasing social output than government investment.Second,among the fiscal policy tools,government purchases can promote economic recovery more than investment subsidies in the short term,but in the long run,they may crowd out effective investment scale,causing economic recession and leading to the loss of China’s overall investment efficiency.Third,by comparing the impulse response values,monetary policy can intervene more effectively in China’s macroeconomics and investment efficiency than fiscal policy,and the effect of quantitative monetary policy is slightly stronger than that of price-based monetary policy.Fourth,from the perspective of social welfare,the policy combination of government subsidies and interest rate reduction by the central bank can optimize the structure of investment entities more reasonably and effectively than the government’s purchase and issuance of additional currency.Based on the above conclusions,this paper puts forward suggestions to optimize the structure of investment entities and improve investment efficiency by mainly relying on private investment.Specifically,the government should use fiscal investment expenditure to give play to the driving effect of government investment on private investment from the supply side,and People’s Bank of China should be committed to promoting the process of interest rate marketization to give play to the key role of interest rates in investment activities,and at the same time improve and create new macro-control policy tools to create a good investment environment and achieve the policy goals of optimizing the structure of investment entities and high-quality economic development.