The Relationship Of Financial Expenditure Structure And Resident Income Gap Research

Since the reform and opening up, as the development of market economy goesmature gradually, people income level has been improved greatly, at the same time,the problem of resident income gap becomes more and more seriously. Under theconditions of market economy, market achieve the efficient allocation of resourcesthrough supply and demand relationship and price system, while government viaadjusting budgetary revenues and expenditures to realize the allocation of resources.Market---“the invisible hand” mainly emphasizes the efficiency of resource allocation,while government pay more attention to the fairness of resource allocation. Fiscalexpenditure, which is one of the important aspect of budgetary revenues andexpenditure, the rationality of fiscal expenditure structure directly influence the effectof government adjust resident income distribution and income redistribution.According to the existing research，the first two chapters classify papers aboutfiscal expenditure and resident income gap briefly, and elaborate the concept of fiscalexpenditure, fiscal expenditure structure, resident income gap and some theory basisabout fiscal expenditure adjust resident income gap in detail. The third chapterfocuses on analyzing theoreticly the interaction mechanism between fiscalexpenditure structure and main fiscal expenditure items, such as basic constructionexpenditure, expenditure for supporting agriculture, education expenditure, socialsecurity expenditure and administrative expenditure. Then the forth chapter analysisempirically the different relationship between fiscal expenditure structure and residentincome gap in long-term by constructing cointegration equation and error correctionmodel. On the basis of empirical result and theory analysis, the last chapter of thispaper puts forward to some relevant policies about official system reform and theadjustment of main fiscal expenditure items proportion, which contribute to optimizethe fiscal expenditure structure continuously, so as to promote government playfunction better in income distribution.