An Empirical Study Of Public Expenditure Scale Influencing Factors

Through the latest contemporary social science research, combiningnormative research and empirical research, and being supported bycomparative studies and literature research methods, the author hasdeeply studied the scale of China’s public spending and the optimal scale,and thus has put forward reasonable proposals for the scale of publicspending with the empirical analysis of public expenditure scale factorsaffecting. Comprehensively and systematically the exact cause of thescale of public spending changes has come out. In this article the authorhas adopted factor method to analyze the optimal size of public spending.It makes social and public demand as the main research object instead ofmaking economic growth as the main target like the Barro-Ramendogenous growth theory, for reflecting the “public” character in theconstruction of our country’s finances. Rational proposals have beenbased on empirical analysis for the problem of the scale of publicspending. Specifically, the text is divided into five chapters:Chapter1, Introduction (including related theory research and thedefinition of related concepts). General guide and summary of the entirepaper begin with a question, to clarify the purpose and significance of thethesis, and then the author sorts out the domestic and international normsand empirical analysis through generalization and summarization to makehis own comments, with defining and analyzing the related concepts and determining the direction of research and ideas of this article, and finallythe author elaborates the thesis research methods and the paper’sinnovation and inadequacies.The second chapter, the analysis of impacting factors on publicspending scale. the author comprehensively and systematically analyzesthe reason on the development of the scale of public spending from theseven aspects, respectively, the population, income distribution, economicdevelopment, the transformation of government functions, and aspects ofthe reform and opening up of financial system reform and the policy, thesocial structure of demand and public spending. Meanwhile the authorlongitudinally analyzes every aspect of the reasons, such as population,choosing the factor of employment rate of our population study,population aging and population population growth rate and financialdependents for detailed comprehensive analysis, which are analyzed theimpact factors of the scale of public spending from both horizontal andvertical angles.Chapter III, the empirical analysis of influencing factors of the scaleof public spending. The scale of public spending choice of measurementdata is first determined and public spending is scientifically defined;Secondly, according to the norms analysis of influencing factors in thesecond chapter of research, the author selects the fit economics variableswhich can be measured. In the end, using1978-2011time series data, various factors are empirically analyzed with time series model.Chapter IV, the optimal size of public spending. This chapter intendsto adopt the factor method to analyze the optimal size of public spending.The author first proposes feasibility analysis of the factor method, andthen creates the factor method model based on empirical analysis of thethird chapter to calculate the average optimal scale of public spending ondata research ranging1978from2011. The author uses the theBarro-Ram endogenous growth model to analyze the scale of publicspending; finally, comparing the factor method with the Barro-Ram, prosand cons are analyzed of two methods in calculating the scale of publicspending.Chapter V, the existing problems and recommendations in China’spublic spending. According to comprehensive empirical analysis of thescale of public spending, the author makes his own rationalizationproposals for the problems of the scale of China’s public spending.