Empirical Analysis On Effect Of Fiscal Livelihood Expenditure To Residents’ Consumption In Anhui Province

Since China’s reform and opening up, China’ s economic development has made remarkable achievements, GDP improved rapidly, residents living standards improved significantly.The problemcouldn’t be ignored is, however,the drive mode of high investment and low consumption in our country economy caused our country structural imbalances in economic growth, the lack of social security and other relevant mechanism lead to the contradiction in field of people’s livelihood. So it is necessary to seek a economic development path not only can promote the economic development but also improve the livelihood of the people, but due to the defects of market itself,there is a market failure phenomenon. The economic intervention through fiscal policy is an effective way to make up for market failure.The impact on expansionary fiscal policy to residents’ consumption has always been the focus of government and academia. The changes about expenditure scale and structure in government spending affect residents’ consumption, make an impact on the transmission mechanism of consumption and finally influence the economy. The view of academics about government spending to residents’ consumption divided "into" and "crowd out" effect all the time. Combing the domestic and foreign existing research,you can find that there are much research on relationship between fiscal expenditure and consumer spending, but the relationship between the people of fiscal expenditure and consumer research is very few, and in the field of the government of the people’s livelihood, the theoretical analysis more focus on time series model,the panel model analysis is less,the growth in precautionary savings of residents and the willingness to spend down. In this paper, it is as a starting point and emphasis on empirical research.In this paper, based on the perspective of people’s livelihood finance, fiscal expenditure can be divided into people’s livelihood expenditure and non-people’s livelihood expenditure.At first,there is a theoretical analysis on the people’s livelihood expenditure, consumption, and the mechanism of them.Take Anhui province as an example to analyze the status in 16 city(except for Chaohu lake)of 2008-2013,make a panel data model to do an empirical test, finally clear the theme on people’s livelihood in Anhui province, we should increase public expenditure scale and improve people’s livelihood consumer expenditure structure in order to increase the residents’ consumption and stimulate domestic demand to promote economic growth, further for the construction of Anhui.