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Artificial Intelligence,Financial Function and Economic Singularities; Simulation Analysis Based on Dynamic General Equilibrium Model

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Xiao HanGe Wei

Abstract:The Chinese government attaches great importance to the development of artificial intelligence and provides strong support in infrastructure,scientific research,and personnel training. Maintaining sustained and steady economic growth is not only the core of economic singularity,but also the goal of high quality economic development in China. In the context of vigorously developing artificial intelligence,it is necessary to explore the impact of government investment and redistribution policy on economic singularities. By constructing a dynamic general equilibrium model containing residents,enterprises and government,and performing numerical simulations,this article explores the impact of artificial intelligence on the economic singularity threshold and the scale of financial function on it.The research results show that artificial intelligence will bring China's economy to a singularity in 2066,the smart capital increases monotonically with technological development,and the economy can achieve sustained and stable growth with the continuous investment of smart capital. Specifically,the elasticity of capital output is positively correlated with the critical value of the economic singularity. The simulation results confirm that the greater the elasticity of capital output,the time node of the economic singularity will gradually be postponed from 2023 to2066,and the economic singularity will be more difficult to achieve. The scale of government in-vestment has a U-shaped relationship with the critical value of the economic singularity. The simulation results show that it is on the right side of the U-shaped relationship,that is,the larger the scale of government investment,the time node of the economic singularity will gradually be postponed from 2035 to 2082.The distribution scale has an inverted U-shaped relationship with the critical value of the economic singularity. The simulation results show that it is on the right side of the inverted U-shaped relationship. The larger the redistribution scale,the economic singularity time node will gradually advance from 2084 to 2039.China should play down its short-term GDP target, launch " new infrastructure" , improve government investment efficiency,increase the scale of redistribution,improve the social security system,and achieve the goal of high-quality economic development in China.