Microeconomic Evidence Of The Impact Of Financial Expenditure On People's Livelihood On Resident Consumption

In the report of the 19th National Congress of the Communist Party of China,it was pointed out that "improving people's livelihood and welfare is the fundamental purpose of development",which coincides with the requirements of people's livelihood and finance put forward before in China.How to improve the quality of financial expenditure to promote the consumption of residents in order to achieve the goal of improving people's livelihood is the starting point and the foothold of this paper.The existing literature on fiscal expenditure and household consumption is mostly from the qualitative or macro point of view.Due to the lack of variables or the lack of data,the credibility of the research conclusions is not high.In view of these deficiencies,this paper has made two improvements:first,the scope of fiscal expenditure is limited to fiscal expenditure on people's livelihood,mainly including education,social security and health care,to study their impact on the corresponding consumption and other consumption of residents;second,the empirical part of this paper uses micro surveys or district and county data.The strengthening of causality and the large increase of data make the conclusion of this paper more reliable than the existing literature.This paper first expounds and generalizes the concepts of people's livelihood finance and residents' consumption,then takes financial expenditure as the research object and reviews the literature on how financial expenditure affects residents' consumption.In view of the shortcomings of the existing empirical literature,this paper collects the micro household education expenditure data.health care expenditure data,pension insurance participation data,municipal financial classification expenditure data,etc.,uses the fixed effect panel data model,macro financial data and micro family data to match,cross-section correlation to build "counter-factual"and other methods,the impact of various kinds of people's livelihood financial expenditure on the consumption of residents has been studied and explored.The main conclusions of this paper are as follows:the implementation of "free compulsory education" and "free medical care for all" policy reduces the corresponding consumption of residents,thus increasing other consumption.Residents' participation in the "new rural social endowment insurance" and "urban residents' Endowment Insurance"reduced the overall consumption.On the whole,education and health expenditure can significantly improve the total consumption and promote the consumption upgrading of residents,and there are significant differences between regions and between urban and rural areas.Due to the limitation of the author's research level,there are still many deficiencies in this paper,such as the improvement of content and the use of measurement methods,which need further study and thinking.