【主讲】廖谋华 助教授 (厦门大学)
【主题】Heavy Industry Priority and the Institution Formation of Centrally Planned Economy
【时间】2013年3月25日 (周一) 15：30-17：00
【地点】上海财经大学经济学院楼801室
【语言】英文
【摘要】This paper presents a two sectors growth model. There is a government who cares about the output per worker of the heavy industry. We show that, given an institution complex similar to the centrally planned economic system, there is unique market equilibrium, such that the allocation is the same as the government's first best allocation.
The institution complex consists of: commodity tax on light industry product; interest rate ceiling; prohibiting the sale of asset; liquidity constraint for consumers; tax on firms' profit; converting tax income to capital; capital allocation control, or upper bound on the level of capital employment for each industry.
A simulation exercise shows that, at steady state, compared with the economy without government, our economy has several aspects similar to that of a centrally planned economy. For example, the relative price of capital good is lower, marginal product of capital is lower, interest rate is even lower, saving rate is higher, greater proportion of capital and labor is employed in the heavy industry.
