Abstract High growth rate, high investment rate and low consumption rate are three typical characteristics of China's macro economy. This paper researches economic growth from the perspectives of the wealth effects, fiscal policy and income distribution. We find that tax rate, distribution number to a person of government transfer payments, government transfer payments, government consumption, the weight of capital in the utility, externalities of government investment, income levels and income distribution all have influence on economic growth rate and consumption–capital ratio. By quantitative researching, it is showed that the rate of economic growth can be explained by Gini coefficient, investment, government consumption, tax, government transfer payments and government investment in the long run|and its fluctuations in the short-term can be decided by Gini coefficient, investment and government investment. Overall, this paper provides an explanation on the typical features of China's macro economy
JU Wei-Xing,FANG Lin. Fiscal Policy, Income Distribution and Economic Growth--An Explanation Based on Wealth Effects. Economic Survey, 2011, 28(2): 014.
2011, Vol. 28 
