The Empirical Analysis On The Inlfuence Of China’s Finance And Tax Policy To The Consumption Of The Residents

Consumption is one of "three carriages" to stimulate the economic development of a country. It isin a very important position in national economic development. However, in recent years, Consuming ratein China is falling, appeared the insufficiency of consumption phenomenon, affecting the rapid economicdevelopment of our country. In this case, in order to stimulate household consumption of China’s economicstimulus and more rapid comprehensive development, Financial policy research of the impact between theconsumption of the residents of our country is very be necessary. What is the relationship between theFinance policy and citizen’s consumption, whether the government can promote the domestic demandthrough expending their expending their expenditure, research of all these questions is very important forfinance policy in practical application performance evaluation and the e direction of policy adjustment infuture.This paper based on the1978-2010data research the expenditure of our country and the taxrevenue policy on analyzing the impact of consumer spending. First, it reviews about finance spending andtaxes on incomes policy residents’ consumption of the relevant influence theories and research, and thenanalyses the fiscal expenditure, tax revenue and the consumption of the residents present situation, thenuses Cointegration theory and error correction model to examine the relationship of the total financialexpenditure, according to the functional properties of fiscal expenditure of the classification of the variousproject, the main categories of taxes in long term and short term though the1978-2010years time seriesdata, at last, the paper Put forward policy Suggestions of the financial policy residents’ consumption toreduce the negative influences.Here is the financial expenditure structure according to the functionalproperties of fiscal expenditure of division, including economic construction spending, social culture andeducation expenditure, and defense spending, administrative expenses and other expenses, the maincategories of taxes including turnover tax and enterprise income tax, individual income tax and housingproperty tax.In this paper, the logarithm of1978to2010gross domestic product structure of householdconsumption and GDP are explained variables, through the establishment of financial spending in the consumption of the residents, according to the functional properties of financial model of the classificationof the various project financial expenditure to the household consumption of the residents of the model andthe major categories of taxes affect to the consumption of the residents of the influence model, through theco-integration theory and error correction model, the empirical analysis of fiscal expenditure fiscalexpenditure and the main categories of taxes to each project in the consumption of the residents long-termand short-term effects, draw the conclusion of this paper: first, China’s financial expenditure to consumer inlong-term consumption of produce extrusion or packed into effect is not certain, financial expenditure andthe consumer in long-term have no apparent equilibrium relationship. Second, no matter in the long-term orin the short term, administrative management spending have no significant influence to the householdconsumption; Social culture and education spending in the short term, or whether in long-term, promote thehousehold consumption; Other spending Limit the household consumption, with extrusion effect in theshort term, or whether in long-term; Economic construction spending in the short term limit householdconsumption, and in the long run promote the consumption;Defense spending in the long term force outhousehold consumption, but in the short term defense spending have no to significant influence tohousehold consumption.Third, the enterprise income tax in the short-term or long-term both in, produceadverse effect on household consumption; Personal income tax whether in long-term or in the short term,all can promote household consumption; In the long-term turnover tax promote consumption, and Housingproperty tax can limit household consumption in long-term, but have no apparent effect to consumption inthe short term to no. This shows that expanding financial expenditure is not always stimulating theconsumer, it can achieve the purpose of promoting consumption only by targeted adjusted to spending eachproject of fiancé expenditure and the main categories of taxes.