Local Government Spending And Consumer Demand In Anhui Province

At present, our country’s macro economy still faces many difficulties and challenges, macro economic downward pressure is still large. To maintain stable economic growth, expanding domestic demand, especially consumer demand to become important fulcrum. However, lack of residents’ consumption and sustained low consumption rate is still the main factors restricting the development of our country’s economy, also with the Chinese government put forward "to promote the" troika "more balanced growth" runs counter to the goal. Therefore, the government how to fiscal policy to further expand domestic demand, to dig up the potential of domestic demand in China is increasingly important. Is to use the panel data of 16 cities in anhui province in this paper, the empirical study of anhui local government spending affect the effect of consumer demand, it can not only enrich the theory of fiscal policy in our country are more, and can make effective fiscal policy for the government to stimulate consumer spending, consumption potential release to provide theoretical basis and suggested countermeasures.The research content of this article can be divided into five parts. The first part is exordium, briefly illustrates the research background and significance of this paper, combing the relevant research literature as well as pointed out in this paper, the possible innovation points and the existing shortcomings. The second part of this article from the theoretical analysis of fiscal expenditure and the relationship between the residents’ consumption demand, on the one hand, reviewed the contemporary western mainstream consumer theory, on the other hand, this paper briefly introduces the Keynesian and the neoclassical respectively affect residents’ consumption of fiscal expenditure of basic theory, finally from the theoretical level, this paper expounds the maintenance of local government spending and a spending and investment spending affect the mechanism of action of consumer demand. The third part analyzes the present situation, the change trend and the reasons of the residents’ consumption in anhui province, anhui province and investigates the amount and structure change of local government spending, and a preliminary conclusion "anhui local government spending and consumer demand exist positive correlation" this proposition. In this paper, in the second and the third part of the theory and based on the analysis of the status quo, in the fourth part by constructing panel data model, two dimension from the total amount and structure effect, empirical research on the anhui local government spending to affect the effect of consumer demand, and a horizontal and vertical comparative analysis was carried out. In the last part, this article is to promote residents’ consumption level in anhui province put forward the corresponding policy recommendations of fiscal expenditure.The research conclusion of this paper includes two aspects. From the point of total effect, one is the consumption demand of urban and rural residents in anhui province and local government spending all have significant positive correlation, namely the expenditure of local government in anhui province from 2007 to 2013 the consumption demand of urban and rural residents to have significant into effect, the extrusion effect of neoclassical opinion does not exist; Local government spending on rural residents’ consumption demand effect more obvious, the influence of the local government spending on rural residents’ consumption in anhui province is far stronger than in the urban residents in degree.From the point of structural effect, first of all, the anhui province maintenance expenditure of urban and rural residents’ consumption demand effect completely on the contrary, it has substitution effect on consumption demand of urban residents, have a complementary effect on the rural residents’ consumption demand; Second, people are spending, investment spending in anhui province have positive into effect on urban and rural residents’ consumption demand, and both the diapirism on rural residents’ consumption demand is more obvious; Finally, from the longitudinal comparison, the fiscal expenditure structure, the anhui province people naturally spending into effect of the consumption demand of urban and rural residents of the most obvious. This article also thinks of urban and rural residents income level to have a significant impact, the consumption demand of rural residents consumption flexibility or marginal propensity to consume less than urban residents consumption flexibility or marginal propensity to consume, this phenomenon has violated the Keynes’ s law of diminishing marginal propensity to consume.In order to further promote consumer demand in anhui province, this article finally from the two aspects of fiscal expenditure scale and structure puts forward relevant policy Suggestions. In fiscal policy, this paper argues that it should be the following three points: one is spending money should be more inclined to rural regions; The second is to optimize expenditure structure should be combined with biochemical fiscal spending people; 3 it is to should insist on when to optimize expenditure structure adjustment increment is given priority to, stock is complementary.