Empirical Study On The Influence Of Government Expenditure To The Rural Residents Consumption Of Hunan Province

Since the reform and open up, China's booming economy gained the worldwide attention. At the same time, some problems, Such as unbalanced development, "urban-rural dual structure", "three questions about agriculture, countryside and peasant", gradually present in the face of people, and these hampered the healthy development of our economy. Especially after the subprime crisis of the United States, the investment and exports as the main dynamic economic pulling power is weakening. Sustained economic growth urgently needs another power--domestic demand to participate. The 1th file in 2009 points out: to expand domestic demand, the greatest potential in the rural areas; to achieve stable and rapid economic development, infrastructure support in agriculture. So, to expand the domestic demand, and to stimulate rural consumption, is very important to the development of our economy.Firstly, states the theory of government intervention and consumption function discussed in this paper, and summarizing different support policy and its characteristics in different historical stages of China; second, analyses the present situation of government support and consumption of rural residents of Hunan province, to provide theoretical support for empirical research; finally, do empirical research between government support and rural resident's consumption of Hunan province, and put forward the policy ideas according to the empirical results.It took vector auto-regressive method and stepwise regression in the empirical research, and found that government support has little influence on rural residents' consumption, this may be due to the inadequate fiscal support, or unsustainable growth and the low level of rural residents' income. But the characteristics of agriculture such as feeble, public goods, were determined that it needs government policy support, whether at present or in future, also the policy effect will manifest in long-term. Therefore, we will put forward some opinions to adjust and consummate the fiscal support policies, combined with theoretically analyzing and practical studying.