Abstract: This paper studies a three level government model on the education expenditures by employing a dynamic game of complete information,coming up with decisions for governments,respectively.In the model,the municipal government firstly acts,and then provincial government,central government act Successively.First of all,it describes the basic model.Secondly,it analyzes the education expenditures employing a dynamic game.Finally,it gives the algorithm of the optimal solution and provides an example that shows the governments how to make decisions.

Key words: government, education expenditure, dynamic game, decision