The Effect Of Social Security System On Urban Residents' Consumption

Since the reform and opening up, our economy increases rapidly. but in the three carriages of promoting the economic growth, investment and export gradually increase the proportion. The proportion of consumption is lesser. Investigating its reason, we can find that the main reason is that disposable income of residents is not high, but we cannot ignore the role of social security as the back of consumption. Accordingly, the relation between consumption and social security will gradually become the focus of study.Currently, foreign research on the relationship between consumption and social security is mature, from the life cycle to the preventive savings on social security has carried on the theory study, at the same time the empirical research is perfect. While the research on the relationship between social security and the residents' consumption is gradually perfect in china, now we usually study the relationship between social security and the residents' consumption using life cycle and precautionary saving theory. The empirical research on the relationship between social security and the residents' consumption is less, and the empirical research is on the phase of using cross-sectional data, we can't build error correction model, so we can't build the relationship between the long-term equilibrium and short-term fluctuations, so that we can analyse the relationship between residents' consumption and social security more comprehensive.In view of this, this paper studies the relationship between social security and consumption based on the theory of social security and the consumption of the residents in theory research, in the empirical research, considering the social security system is still in the initial stage in the vast rural areas in China, just small coverage and still fewer varieties. We have basically established social security system in urban areas. Therefore, in the empirical study we choose time series data of the social security and the urban residents' consumption, and according to the theory of consumption function, we establish the regression model between social security and urban residents' consumption, which demonstrates quantitative stimulative effect and the causal relationships between consumption and social security. At the same time, the paper establishes error correction model, which establishes the relationship between the long-term equilibrium and short-term fluctuations of social security and the consumption of the residents. So that we can analyse the relationship between residents' consumption and social security more comprehensive. Through analysis, we found that the social security is good to residents' consumption obviously. In order to accurately simulate the relationship between residents' consumption and social security, this paper establishes a quadratic equation, and calculates the lowest level of social security according to quadratic equation. Finally, Considering the social security coverage, Through the comparative analysis, we found that endowment and unemployment insurance are two important social security tools, in order to make the analysis more practical significant, this paper analyses the present situation and the existence question of the two kinds of insurance, meanwhile,the paper puts forward some corresponding suggestion, so as to improve the level of consumption and promote China's economic growth.