Empirical Analysis Of The Effect Of Rural Residents' Consumption On Rural Social Security Expenditure

Research about the impact of social security on consumption has importantpractical significance at this stage to increase the consumption and the promotion ofindustrial structure upgrading. Many scholars investigated the impact on consumption,from different angles using different methods of Social Security, but they did not reach aconsensus. It is worth noticing that the existing studies are mostly based on linearmodels. With the advancements of nonlinear theory, Research about the impact of socialsecurity on consumption in the academia has gradually gone in-depth, and graduallytake into account the nonlinear effects of social security on consumption. Based on this,using the method of combining theoretical analysis and empirical research, the paperestablished a threshold model to analyze the expenditrure of rural social security onfarmers' consumption behavior.First the author reviewed and summarized corresponding domestic and foreignliterature concerning social security consumer behavior followed by a brief introductionto the theory of the social security of the consumer, and analyzed the mechanism ofimpact of social security on residents' consumption action from two angles of theincome distribution effect and the wealth effect of social security followed by theanalysis of the rural social security status and problems and residents' current situationof consumption. And then we adopted the rural panel data from1998to2009and selectsocial security expenditure, disposable income, spending habits, savings, wealth,income uncertainty as main variables to establish a panel threshold regression model ofsocial security for rural consume. It concluded that social security played a significantrole in promoting the consumption level of rural residents, and when the social securityexpenditure surpassed the corresponding threshold, this role will further be enhanced.On this basis, this article selected the relevant variables to analyze the impact of thesocial security on residents' consumption structure, the main conclusions were that thesocial security have a role in promoting on survival consumption and the enjoymentconsumption, in addition the role will increase as social security expenditure across the threshold level. Finally, with the combination of empirical study conclusions and themain problems for the rural social security we put forwards primarily from thefollowing policy recommendations: to increase rural residents incomes and stabilizethe income expectations; to accelerate the popularity of the social security program andincrease investment in social security; to improve the standard of social securitypayment, which would promote the strengthening of rural social security construction oftotal household consumption and quality improved significantly.