Abstract: Since China entered the New Normal, the economic growth has slowed down, the economic structure has been unbalanced, and the leverage ratio ratio of enterprises has been rising, especially zombie enterprises. The dynamic stochastic general equilibrium theory model, which includes financial accelerator and two types of heterogeneous enterprises, is established in this paper to explore the relationship between financial subsidies, zombie enterprises and economic structure in combination with China's actual conditions, aiming to provide policy enlightenment for the macroeconomic policy objectives of stabilizing growth and adjusting structure. The research results indicate that the bankruptcy of zombie enterprises is of great significance for China's economic development and structural optimization, but it also leads to an increase in bank risks and unemployment rates; Impulse simulation analysis shows that any disturbance impact can not simultaneously meet the multiple objectives of stabilizing economic growth, optimizing economic structure, reducing enterprise leverage ratio, controlling bank risk, releasing financial pressure, etc. The central government must take a holistic approach, weigh the pros and cons, accelerate the clearance of zombie enterprises, and curb the tendency towards zombie economic structure.

Keywords: financial subsidies; Zombie enterprises; Economic structure; Dynamic stochastic general equilibrium theory;