The Research Of Impact That Government Spending To The Private Consumption

The low level of consumption has become one of the major problems that limit the progress of economy since the financial crisis. The transition and promotion of economic architecture, and the change of economic development have become hot issues currently, especially in the current phase of comprehensive reform going into deeper. As the central region under industrial restructuring and the six provinces cooperate with each other, the rapid development of the central region will become an important power of the sustained economic progress at the "Thirteen Five" period. One of the key of the economic transition is that how to effectively stimulate and improve the level of consumption of the entire local residents.In this paper,we assume the central region as an integral part,and chose the date from 1995 to 2013.Then we’ll have a empirical study from two aspect to the relation between expenditure and resident’s consumption.The final analysis displayed that:in the range of the data we selected,there is a balanced relationship between the government expenditure and the consumption of residents.Furthermore,the government expenditure in general has played a lead role for household the consumption of residents whether in the short term or in the long term.However the different expenditure has a different policy effects to the consumption of residents.