A Study Of The Impact On Social Endowment Insurance For Urban Residents’ Consumption

Although the development of China’s economy is flourishing, the consumption trend descends year by year, which has sharpen the contradiction between the mode of our economy and the economy growth. The stimulation of our domestic demand like consumption and investment is the necessary method to expand our economy, and we should insist to it in a long run. The social security of retired person is one of the most important factors which influence the social consumption. The improvement of social security partly restricts the development of consumption. Figuring out the relationship between pension and consumption could provide for evidence to government.As to the relationship between pension and consumption, many scholars have provided for their own points but no agreement has reached yet. After carefully study about relevant theories, I accomplished this article. In this article, I introduce the background and writing meanings, the main content, the research method and innovation at first. Then I arranged the important theories like the Absolute Income Hypothesis, the Life Cycle Hypothesis and the Precautionary Savings Theory, which funded the theory basic of this article.Afterwards, I analyze the history and the present situation of endowment insurance system. At the mean time, I introduce the trend and composition of individual’s consumption. Based on these data analysis, I consider the pulling mechanism of pension to consumption. To conclude this, I think pension influence consumption through personal income, income redistribution and personal expectation.Then I founded a model according to Franco Modigliani"s Life Cycle Hypothesis. The main variables contain personal consumption expenditure, income, pension, medical expenditure and education expenditure. Data of17prefecture level city of Shandong province from2003to2010was used to do the quantitative analysis. The result shows that the pension positively affects consumption. At last, the article concludes and accounts some suggestions based on the result. At last, according to the results of empirical analysis, we put out some suggestions in order to improve the social endowment insurance and prompt our consumption. Including:figure out the duties belongs to who, rasing the coverage of social endowment insurance, enhance the operation of endowment insurance fund and concerned about the specific characteristics of different province.