Study On Crowding-in Effect Of Fiscal Policy To Consumption Demand

2007 outbreak in the United States subprime mortgage crisis triggered by the financial crisis on global finance, the economy has been a huge impact. The financial crisis caused a significant reduction in China's exports to economic growth pressures, this starts the troika of consumer choice for economic development. Hunan is an important province in central China's Hunan to promote the economic revitalization of the central rise of great significance. This paper first analyzes the status of current consumption in Hunan Province, found that: Hunan, a steady increase in the total retail sales of social consumer goods, record-high growth rate of the upward trend, but this situation is mainly invest in government consumption that is driving results. In addition, through empirical analysis of this paper are: the long term, Hunan Province, there is the financial expenditure and the long-run equilibrium consumption complementarities (positive correlation) relationship; from the short term, government spending for consumption had a positive impact, and government finances changes in consumer spending growth, when the causes of changes in Granger. Judging from past experience, tax policies to increase government spending and even a low interest rate policy is the United States, Japan and other commonly used economic power policy. Drawing on international experience, this article made from the regional dimensions of consumer demand in the promotion of Hunan Province's fiscal policy recommendations: Changzhutan "3 +5" urban agglomeration should be given the full exercise of the State Council, the special financial power to implement appropriate taking into account the characteristics of Hunan, "two-type" and harmonious society building, fiscal and tax policy, small and medium cities should speed up infrastructure construction, establish a sound social security system and reform, and gradually improve the health system in rural areas, the tax cuts should be proactive and implement a policy of subsidizing agricultural production and the establishment of Financial Fund for Agriculture an effective mechanism for long-term growth.