The Impact Of Fiscal Agricultural Expenditure On The Rural Dweller Living Consumption

The communist party’s18th national congress said that solvin g the question ofthe agriculture, the countryside and the farmer was the most important task of theCommunist Party of China. Keynes’s marginal propensity to consume makes clearthat the key to stimulate consumption is to stimulate consumer demand for lowincome groups. China is a large agricultural country. As an important means ofmacro-control, Fiscal policy plays a significant role in the adjusting the consumptionstructure of rural dweller and guiding the rural dweller’s consumption.In this paper, as a starting point to explore the impact of fiscal agriculturalexpenditure on the rural dweller living consumption, to analyze the internalconnection between fiscal agricultural expenditure and the rural dweller livingconsumption by means of the method of econometrics and grey relational analysismethod with annual time series data from1978to2012. First, Research the state ofoverall structure and features of fiscal agricultural expenditure and the rural dwellerliving consumption based on integration of theory and practice, points out the currentproblems of fiscal agricultural expenditure and the rural dweller living consumption.In the process of empirical analysis, the study was conducted in two phases to solvechanging statistical caliber and ensure the integrity and accuracy of the researching.The first stage (1978-2006) set up an econometric model to study on the relationshipbetween them by using the method of econometrics, and the second stage (2007-2012)study on the relationship by using grey relational analysis method. The conclusionthat the per capita income of rural dweller was an important factor and fiscalagricultural expenditure can regulate the rural dweller living consumption was basedon the two stages. At last, this paper also gives some advice on policy basing on theconclusion and the current problems of fiscal agricultural expenditure and the ruraldweller living consumption. First, increase support to ensure that the total financialexpenditure, second, optimizing fiscal agriculture input structure to adjust theconsumption structure of rural dweller living consumption, third, expanding thechannels of income to ensure that the rural residents "income doubling", fourth,improving quality and changing idea to create the subjective conditions for the optimization of the consumption structure.