Research On The Mechanism Of Fiscal Expenditure Affecting Resident Consumption

Consumption, investment and exports are the three major driving forces for economic development. From the export situation of China, after the2008financial crisis the world economy have different degrees of decline, China’s export trade has also been a heavy blow. Now the world economy is in a period of adjustment after the crisis, at the same time the economy gradually warming and economic downward pressure exist. The world situation is still complicated, the European sovereign debt crisis is likely to worsen, the United States is confronting the plight of withdraw QE and fiscal cliff problem. Export is very difficult to be the main pillars to promote the development of our economy.For our domestic economic situation, the previous "heavy investment and light consumption" model of development is difficult to continue. The consequences of excessive pursuit of high investment have been gradually emerging, while the problem of insufficient consumption also began to plague our economy forward. Now China is in a period of important strategic opportunities for development, economic restructuring faces important opportunities and significant challenges. We need to maintain healthy development of the economy in general, and the transformation of economic development patterns, deepen social transforms; we need to expand domestic demand to achieve. The focus of expanding domestic demand to improve our resident consumer demand, facilitate the domestic consumer market. Then there are many problems of China’s domestic demand and consumption, lack of resident demand in the domestic market, consumption rate remained low, especially in the urban-rural dual economic structure of rural residents than urban resident consumption serious consumption. Consumption growth rate significantly slower than the growth rate of economic development, the current status of resident consumption and China’s economic development seriously inconsistent, these are the mark China’s economic transformations have to break. So research fiscal policy affect the resident consumer is particularly important in this critical phase of economic and social transition. Both from the point of view in theory or in practice, public financial spending could have inflation on the residents. China’s current economic situation is the low consumption rate with the high savings rate. How to effectively use fiscal spending policy tools to guide the consumer to promote economic growth, this series of questions focus of this study. Our fiscal expenditures for social security, health care, education, housing and price subsidies are too little. There have a lot of question, which severely restricts the consumption of urban and rural residents is expected. To fundamentally driven by household consumption, expanding domestic demand, it is necessary to improve the financial aspects of these expenditures to reduce the worries of the resident living in the future.This paper mainly through private consumption and fiscal expenditure theoretical research, discusses fiscal spending projects on the mechanism of action, and then based on existing data analysis of consumer spending status quo, thereby establishing econometric models to identify different financial expenditure on the role of the consumer level, and finally learn from foreign experience made on the basis of fiscal expenditure policies on the improvement plan to guide urban and rural residents increased consumption benign.The intent of this article is to study the financial impact of spending on consumer mechanism. The paper consists of five parts, the main content of this paper and structure as follows:In the first part is an introduction. The main contents include thesis research economic background and significance, the research status of domestic and foreign, innovation and shortcomings of this article.The second part is the impact on consumer spending mechanism analysis. From consumer demand and fiscal policy theories, analyzes various consumer classical theories of factors affecting consumer research in the Western economies. Fiscal spending on the various schools of the role of the consumer mechanisms and principles, then explores the different consumer spending on different effects.The third part is the research on the reality of household consumer and fiscal expenditure. Depth discussions of the status of consumer demands, and find the reasons of lack of consumer demand. Analyze China’s consumer-related and public financial expenditures of the main problems. Then measure the affects between the public financial expenditure and household consumption use of empirical analysis method. At the last calculate interrelated conclusions.The fourth part is learning of sample countries how to guide consumer spending policies. On the basis of the reference from sample countries to guide household consumption expenditure policies, combined with China’s actual situation, summarize resident consumption abroad to expand the advantages of fiscal expenditure policies, proposed expansion of household consumption on China’s fiscal expenditure policies.The last part is to guide resident consumer fiscal expenditure policy recommendations. Based on the foregoing analysis summary find China’s fiscal expenditure policy-related issues, and summarize the corresponding fiscal policy recommendations to guide resident consumer.