A Study On The Impact Of Public Education Expenditure On Educational Expenditure Of Urban Residents In China

Public spending on education is the basis for the development of a country’s education, reflecting the national investment efforts and emphasis in field of education. In2012, the central government has been accounted for its budgeting with the national financial education expenditure ratio of4%of GDP, so public expenditure on education in China will greatly enhance in the future. Educational expenditure as an important item of resident spending reflects the family’s emphasis on education and affordability. From1992to2010, China’s public expenditure and household expenditure on education are rising. However, the public expenditure on education in china accounted for the proportion of the gross domestic product (GDP) has remained between2.35%-3.65%. So the slow growth makes China’s education survive in the gap with the world average. Urban resident’s educational burden and education spending tendencies in china change with the "U" shape, and the year of2002is the cut-off of the "U" shape. Relatively, Urban resident’s educational burden is heavier than other countries.Public expenditure and resident spending on education as two major sources of funding for education have been the focus of scholars’research. But as two different nature sources of funding for education, the relationship between them have rarely been studies. Therefore, this paper chooses the urban educational expenditure as a starting point, utilizing the methods of mathematical statistics to reveal the effect of public educational spending on household educational spending.Based on international experience, the public expenditure on education has "alternative" effect on household spending on education. That is to say, government increasing the public expenditure on education can partially decrease the household spending on education. In order to verify if there is the "alternative" effect in china, the author proposes this paper’s study assumption, based on the theories of human resource management, public goods and education cost-sharing.Our gross national product converses to funding for education with different forms. In general, we can devise the factors which affect resident educational expenditure into three levels:the first level is the household income and expenditure, which is the most closest factor; the second level is educational policy, including tuition policy and public educational spending policy; the third level includes the situation of macro-economic and public expenditure. Refining the influencing factors, the author selects gross domestic product, household consumption expenditure, household disposable income, tuition policy, public spending, and public spending on education as indicators. With the time-series data from1992to2010, the author establishes a stepwise regression model. According to the processing results of SPSS17.0, the indicator of public expenditure does not enter the model, and the indicator of public expenditure on education enters the model "reluctantly". With the panel date of31cities from2000to2010, the author builds a multiple regression model. According to the processing results of Eviews6.0, none of the public expenditure and public expenditure on education passes the t-test of the model. Therefore, the author concludes that the public expenditure on education is not obvious alternative effect on the urban resident’s educational expenditure.In this paper, with the methods of mathematical statistics, the author sorts out the public expenditure and urban resident expenditure on education from1992to2010. The conclusion and analysis results provide a reference to the development of public education policies, which can guide residents’ correct and reasonable consumption of education.