An Empirical Research Based On DEA About The Provincial Public Expenditure Efficiency Concerned With People’s Livelihood

No matter the education, health or housing, livelihood issues are the important problems which be related to the vital benefits of the masses. In recent years, the government work report are related to how to speed up the development of social undertakings and how to protect and improve people’s livelihood. Government concerned about the livelihood of the people in the new strategic height. The12th Five-Year Plan stressed to adhere to the people’s livelihood priorities, improve employment, income distribution, social security, health care, housing and other benefits and institutional arrangements to improve people’s livelihood, promote the equalization of basic public services, and strive to make the development results to benefit all people. The state finance to fulfill the functions of public finances and strengthen the efforts to support the livelihood areas. The state finance increased investment from education, health care, housing and other aspects. Increase capital investment is the first step in improving people’s livelihood, while improving people’s livelihood and the financial capital spending efficiency is the top priority of the government should be concerned about. This paper is based on the theory of public finance, using data envelopment analysis (DEA) to analyze and evaluate the expenditure of the financial funds for livelihood. This analysis includes the technical efficiency, pure technical efficiency, scale efficiency analysis. Compared the provincial government livelihood spending efficiency, we can optimize the efficient use of funds paid by the central government transferred to the provinces, reasonable funds configure, improve people’s livelihood, and promote the equalization of basic public services, in order to better complete the target of the17th National Congress of the Communist Party of China and the target of the12th Five-year Plan.Through the study of the existing literature, the western scholars’research on the efficiency of fiscal spending is very constructive. However, most of the research from the existing literature has focused on the theory of public expenditure, the factors which affect fiscal expenditure and the optimal size of the expenditure. The recent research achievement and empirical analysis are rare. And when specific to the livelihood of the people, it is hardly any. In recent years, the research of domestic academia on the livelihood of people begins to increase gradually. Their research from different points has obtained certain achievements.While the existing literature has made great achievements, the academic circles at home and abroad in the research on the livelihood issues is still lack of systematic and integrity in general. The main blank on the existing literature is that there is no study that treats livelihood as a whole.This paper is based on the above deficiencies and gaps in livelihood of people to choose the main topic. On the basis of the clear meaning of livelihood of people, this paper use DEA to consider the livelihood of people’s spending as a whole, analysing and evaluating the fiscal expenditure on the livelihood of people from technical efficiency, pure technical efficiency and scale efficiency.In the first part, this paper discusses the background and the significance of this study. It proposes the view that the government should fulfill the functions of public finance and strengthen the financial investment in livelihood areas. This view indicates that the purpose of this paper is to optimize the efficient use of the transfer funds by the central government to the provinces and reasonable capital allocation, improve people’s livelihood, and promote the equalization of basic public services. The main point of next part is to describe the research content, research methods and technology roadmap. In this part, it put forward the innovation of this paper, and selects the theory of economic efficiency and the theory of fiscal spending theory as the theoretical support. It forms the efficiency of the overall framework of the people’s livelihood and financial capital spending, while discusses relevant concepts. The third part reviews and comments on the domestic and foreign literature, and selects the input and output indicators that reflect the people’s livelihood and financial capital spending efficiency. Use of data envelopment analysis (DEA) method to analyze and compare the efficiency of the livelihood of the31provinces in the country financial capital expenditures in terms of technical efficiency, pure technical efficiency, scale efficiency and returns to scale. The results shows that there are differences in the technical efficiency in the31provinces. The technical efficiency value of the various provinces are above0.9which shows that our society is harmonious. The livelihood fiscal expenditure funds efficiency of the31provinces is high, and the pure technical efficiency value of26provinces is1from2007to2010. Five provinces’ pure technical efficiency value is not1. There are8provinces’ scale efficiency and scale returns is not1, these provinces only adjust the long-term financial livelihood expenditure of funds configuration scale, can eliminate unreasonable loss of efficiency.At last, it suggests that the government should fulfill the functions of public finance strength financial investment in livelihood areas, control the administrative expenditure, and develop the economic construction and livelihood issues at the same time.